Company XYZ follows fixed order quantity model for Inventory planning. Annual Demand for the product is 1000 units; Cost per Order is $5, Inventory carrying cost per unit is $ 1.25, Lead time for procurement is 5 days and Cost per item is $ 12.5. With the given data calculate: a. EOQ-Economic Order Quantity b. Reorder Quantity c. Total cost of Inventory (answer by file attachment options)

Company XYZ follows fixed order quantity model for Inventory planning. Annual Demand for the product is 1000 units; Cost per Order is $5, Inventory carrying cost per unit is $ 1.25, Lead time for procurement is 5 days and Cost per item is $ 12.5. With the given data calculate: a. EOQ-Economic Order Quantity b. Reorder Quantity c. Total cost of Inventory (answer by file attachment options)

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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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
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