Aero Parts National (APN) is manufacturing aircraft parts and avionics. Consider a landing gear part that APN
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Aero Parts National (APN) is manufacturing aircraft parts and avionics. Consider a landing gear part that APN carries: APN sells 2,700 of these parts per year and places an order for 600 of them at a time. Assuming no safety stock, the carrying cost per unit per year is calculated as $10, while the stock-out cost is estimated at $12 ($6 lost profit per switch and another $6 lost in goodwill, or future sales loss).
a. What will be the optimum safety stock level? What will be the best reorder point level for APN? C. What will be the optimum number of orders per year?
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Related Book For 
Foundations Of Airline Finance
ISBN: 9780415743259
2nd Edition
Authors: Bijan Vasigh, Kenneth Fleming, And Barry Humphreys
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