Holding costs are 2 per item per year and ordering costs, Ask an Expert

Management Studies

Q. A company produces subcomponents at a rate of 300 per day and uses these subcomponents at a rate of 12500 per year (or 250 working days). Holding costs are $2 per item per year and ordering costs are $30 per order.

Illustrate what percentage of time will the facility be producing components?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9309261

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