Three items in inventory have the following characteristics: The average investment in these items is not to

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Three items in inventory have the following characteristics:

The average investment in these items is not to exceed $3,000. The items are purchased from different vendors and are not jointly ordered. Determine the order quantities for these items so that the investment limit is not exceeded.

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Business Logistics Supply Chain Management

ISBN: 978-0130661845

5th edition

Authors: Ronald H. Ballou

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Question Posted: Jun 16, 2016 01:27 AM

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Three items in inventory have the following characteristics: The average investment in these items is not to

Question:

Average demand per year Lead time, weeks Carrying cost per year Delivered purchase price per unit Procurement cost per order 51,000 0.5 25% $1.75 510 25,000 0,5 25% 3.25 S10 9,000 0.5 25% $2.50 510

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The order quantity for each item when there is no restriction on inventory investment is Q 2DS IC W...View the full answer

Business Logistics Supply Chain Management

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