Legu Bloxs – specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a yearly order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 5% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 150 per order per year. What is the economic order quantity? What is the Total Inventory Cost? How many orders should be made each year?
Legu Bloxs – specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a yearly order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 5% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 150 per order per year. What is the economic order quantity? What is the Total Inventory Cost? How many orders should be made each year?
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Legu Bloxs – specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a yearly order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 5% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 150 per order per year.
What is the economic order quantity?
What is the Total Inventory Cost?
How many orders should be made each year?
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