Answered You can hire a professional tutor to get the answer.
High Tech, Inc. is a virtual store that stocks a variety of calculators in their warehouse. Customer orders are placed; the order is picked and...
High Tech, Inc. is a virtual store that stocks a variety of calculators in their warehouse. Customer
orders are
placed;
the order is picked and packaged;
and then shipped to the customer. A fixed
order quantity inventory control system (FQS) helps monitor and control these SKUs. The
following information is for one of the calculators that they stock, sell, and ship.
Average demand
12.5 calculators per week
Lead time
3 weeks
Order cost
$20/order
Unit cost
$8.00
Carrying charge rate
0.15
Numb
er of weeks
52 weeks per year
Current on
-hand inventory
35 calculators
Scheduled receipts
20 calculators
Backorders
2 calculators
Question High Tech Inc. currently orders 200 calculators. How much can be saved by adopting
an EOQ (the quantity in 3a)
versus their current Q = 200?
