A company orders a product from an outside supplier. The annual demand for the product is 65,000 units, and each time an order is placed the company incurs an ordering cost of $194.The company's annual carrying charge is 27% of the item's cost of $239 per unit. What order quantity minimizes the company's total annualized inventory-related costs? The economic order quantity is ---------- units

A company orders a product from an outside supplier. The annual demand for the product is 65,000 units, and each time an order is placed the company incurs an ordering cost of $194.The company's annual carrying charge is 27% of the item's cost of $239 per unit. What order quantity minimizes the company's total annualized inventory-related costs? The economic order quantity is ---------- units

Name: A company orders a product from an outside supplier. The annual demand
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Description: A company orders a product from an outside supplier. The annual demand for the product is 65,000 units, and each time an order is placed the company incurs an ordering cost of $194.The company's annual carrying charge is 27% of the item's cost of

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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