William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H a) The EOQ for the workbooks is (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? Annual Holding Cost = Average Inventory x Annual Holding Cost per Item= c) What are the annual ordering costs? Annual Ordering Cost = Ordering Cost per Order x Number of Orders = Ordering Cost per Order x (Total Annual Demand/Order Size) (round your response to the nearest whole number). = D S = $ H=S[ Q 19,400 units/year $26/order $4/unit/year (round your response to the nearest whole number).
William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H a) The EOQ for the workbooks is (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? Annual Holding Cost = Average Inventory x Annual Holding Cost per Item= c) What are the annual ordering costs? Annual Ordering Cost = Ordering Cost per Order x Number of Orders = Ordering Cost per Order x (Total Annual Demand/Order Size) (round your response to the nearest whole number). = D S = $ H=S[ Q 19,400 units/year $26/order $4/unit/year (round your response to the nearest whole number).
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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