We use 2750 per year of a certain subassembly that has a, Ask an Expert

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We use 2,750 per year of a certain subassembly that has a purchase cost of $450, and an annual holding cost of $400 per unit. Each order placed costs us $150. We operate 200 days per year and have found that an order must be placed with our supplier 12 working days before we can expect to receive that order. For this subassembly, find: (a) the economic order quantity (b) the reorder point (c) annual ordering cost.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92594029

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