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Management team at Samsung wants to determine what should be their inventory management strategy for Galaxy S7. The annual demand for the device is stable and predicted to be 150,000. Each time Samsung manufactures the Galaxy S7, it incurs a setup cost of $120. The plant has a daily production rate of 700 components and works for 250 days in a year. Samsung can produce each Galaxy S7 at a unit manufacturing cost of $ 271, and the unit inventory holding cost is 28% of this unit manufacturing cost. What is the maximum inventory for this device?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92544087

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