The demand for product is 600 units per week, and the items are withdrawn uniformly. The items are ordered, and the setup cost is $25. The unit cost of each item is $3, and the inventory holding cost is $0.05 per item per week. Assuming shortages are not allowed, determine how often to order and what size should it be. If shortages cost is $2.00 per item per week, determine how often to order and what size it should be
The demand for product is 600 units per week, and the items are withdrawn uniformly. The items are ordered, and the setup cost is $25. The unit cost of each item is $3, and the inventory holding cost is $0.05 per item per week. Assuming shortages are not allowed, determine how often to order and what size should it be. If shortages cost is $2.00 per item per week, determine how often to order and what size it should be
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The demand for product is 600 units per week, and the items are withdrawn uniformly. The items are ordered, and the setup cost is $25. The unit cost of each item is $3, and the inventory holding cost is $0.05 per item per week.
- Assuming shortages are not allowed, determine how often to order and what size should it be.
- If shortages cost is $2.00 per item per week, determine how often to order and what size it should be.
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