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D=380

cost per kit=120

order cost=35

holding cost= 20% of kit cost =24

backorder cost=15

lead time for orders= 6 days air freight

working days per year=300

1. what is the economic order quantity with backorders planned shortage policy ?

2. what is the planned number of backorders during each cycle?

3. what is the average annual number of backorders.

4. if for the backorder planned shortage model the annual holding cost =107.10 and annual backorder planned shortage model=278.46.what is the total annual variable cost?

5. what is the reorder point with backorder policy?

6. what is the number of orders per year for this backorder planned shortage model?

7. what is the cycle time (days)with the backorder planned shortage model policy?

8. what would you recommend concerning the implementation of a backorder policy?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91590581

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