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QM3345
QM3345
QM3345
Summerizing
Ans:
a) Therefore the Optimal units oer order (Q*)= 600
b) If H double
Therefore the Optimal unites per order (Q*)= 424.264069
c) If H drops in half
Therefore the Optimal units per order (Q*)= 848.528137
Given
The yearly demand of connectors (D)= 15000 units
The cost to place and process an order (S)= 75 $
Annual holding cost (H)= 25 $/unit
The company operaqtes (Q)= 300 days/year
The lead time to receive an order = 2 working days
Ans:
a) The economic order quantity = 300
b) The annual holding costs= 3750
c) The annual ordering costs = 3750
d) The reorder point = 100