Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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The Bosch factory in New Bern, NC uses dishwasher motors at a steady rate of 17308 units per year. Bosch procures
these units from a supplier at a purchase cost of $58 per unit. Bosch receives an order 26 days after it is placed.
Regardless of the number of units ordered, Bosch incurs a fixed cost of $2988 for placing, shipping, and receiving the
order. The holding cost per unit per year is 30% of the purchase cost per unit. Assume Bosch operates 364 days, 52
weeks, or 12 months per year.
Calculate the average time a unit spends in inventory between orders in DAYS for the optimal order quantity from the
problem above.
Rounding instructions
• Carry your calculations to at least 3 decimal places.
• Enter your answer rounded to one decimal place (nearest tenth).
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Transcribed Image Text:The Bosch factory in New Bern, NC uses dishwasher motors at a steady rate of 17308 units per year. Bosch procures these units from a supplier at a purchase cost of $58 per unit. Bosch receives an order 26 days after it is placed. Regardless of the number of units ordered, Bosch incurs a fixed cost of $2988 for placing, shipping, and receiving the order. The holding cost per unit per year is 30% of the purchase cost per unit. Assume Bosch operates 364 days, 52 weeks, or 12 months per year. Calculate the average time a unit spends in inventory between orders in DAYS for the optimal order quantity from the problem above. Rounding instructions • Carry your calculations to at least 3 decimal places. • Enter your answer rounded to one decimal place (nearest tenth).
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