the following data has been provided relating to one of the essential supplies that is utilized for Barloworld logistics operations. usage is approximately 10 brackets per day during the year. the brackets are purchased from a supplier 90km away and the costs incurred include holding costs per bracket per year of R1.50, order cost per order of R18.75. the lead time is 2 days and working days per year is 250 days. advise the management on the following inventory management issues. Examine the factors that you will prioritise at Barloworld in ensuring that inventory management adds value to the organisation and improves on its competitive advantage. what would be the economic order quantity? the annual inventory holding costs. how many orders would be made each year? what would be the annual order cost?
the following data has been provided relating to one of the essential supplies that is utilized for Barloworld logistics operations. usage is approximately 10 brackets per day during the year. the brackets are purchased from a supplier 90km away and the costs incurred include holding costs per bracket per year of R1.50, order cost per order of R18.75. the lead time is 2 days and working days per year is 250 days. advise the management on the following inventory management issues. Examine the factors that you will prioritise at Barloworld in ensuring that inventory management adds value to the organisation and improves on its competitive advantage. what would be the economic order quantity? the annual inventory holding costs. how many orders would be made each year? what would be the annual order cost? what is the time between orders and the reorder point (ROP)?
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