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Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 14,700 units. Southeastern estimates its annual holding cost for this item to be $24 per unit. The cost to place and process an order from the supplier is $78. The company operates 300 days per year, and the lead time to receive an order from the supplier is 3 working days.

a) What is the economic order quantity? ______ units (round your response to the nearest whole number).

b) What are the annual holding costs? ?$______ ?(round your response to the nearest whole number).

c) What are the annual ordering costs? ?$___________ ?(round your response to the nearest whole number).

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92543584

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