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Q. South-eastern Bell stocks a certain switch box at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. South-eastern estimates its annual holding costs for this item to be $25 per unit. The cost to place also process an order from the supplier is $75. The organization operates 300 days per year also the lead-time to receive an order from the supplier is 8 working days.

(a) Find out the economic order quantity.

(b) Find out the annual holding costs.

(d) Illustrate what is the reorder point?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9312790

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