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Southeastern Bell stocks a certain switch box at its central warehouse for supplying field service offices. The yearly demand for these connectors is...
Southeastern Bell stocks a certain switch box at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. Southeastern estimates its annual holding costs for this item to be $25 per unit. The cost to place and process an order from the supplier is $75. The company operates 300 days per year and the lead-time to receive an order from the supplier is 8 working days.(a) Find the economic order quantity.(b) Find the annual holding costs.(c) Find the annual ordering costs.(d) What is the reorder point?
Givenannual demand = 15000annual holding cost = $25perunitordering cost = $75lead time = 8 dayscompany operates 300 days a yeardaily demand, dholding cost, Hordering cost, Sa) EOQ =...