A local electronic repair shop uses 12,500 units of mobile batteries each year. It costs RO 25 to place and receive an order. The cost of material is RO 16 per unit and carrying cost is 10% of the cost per unit. Calculate the Economic Order Quantity for the shop, number of orders and total inventory costs.

A local electronic repair shop uses 12,500 units of mobile batteries each year. It costs RO 25 to place and receive an order. The cost of material is RO 16 per unit and carrying cost is 10% of the cost per unit. Calculate the Economic Order Quantity for the shop, number of orders and total inventory costs.

Name: A local electronic repair shop uses 12,500 units of mobile batteries e
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Description: A local electronic repair shop uses 12,500 units of mobile batteries each year. It costs RO 25 to place and receive an order. The cost of material is RO 16 per unit and carrying cost is 10% of the cost per unit. Calculate the Economic Order Quantity

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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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
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