A large automobile repair shop has a very low demand for certain component i.e. the demand is 8 items per year. The demand is assumed to be deterministic.The cost of placing an order for this part is Re. 1/-. The unit cost is Rs. 30/-. The inventory carrying cost is 20% of average inventory. Find the optimal order quantity, by considering the integrality of items. What would be the optimal time to place orders? What is the value of optimal quantity by using square root formula?

A large automobile repair shop has a very low demand for certain component i.e. the demand is 8 items per year. The demand is assumed to be deterministic.The cost of placing an order for this part is Re. 1/-. The unit cost is Rs. 30/-. The inventory carrying cost is 20% of average inventory. Find the optimal order quantity, by considering the integrality of items. What would be the optimal time to place orders? What is the value of optimal quantity by using square root formula?

Precision Machining Technology (MindTap Course List)

2nd Edition

ISBN:9781285444543

Author:Peter J. Hoffman, Eric S. Hopewell, Brian Janes

Publisher:Peter J. Hoffman, Eric S. Hopewell, Brian Janes

Chapter2: Measurement, Materials, And Safety

Section2.5: Quality Assurance, Process Planning, And Quality Control

Problem 10RQ: If an X-bar chart graph falls below the LCL or rises above the UCL, a machining process is said to...

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