A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days a year that the plant operates. Annual holding cost is $3 per chip, and ordering cost is $120. Determine the following: What is the reorder point, if the lead time is 7 days?
A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days a year that the plant operates. Annual holding cost is $3 per chip, and ordering cost is $120. Determine the following: What is the reorder point, if the lead time is 7 days?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady
rate during the 240 days a year that the plant operates. Annual holding cost is $3 per chip, and ordering
cost is $120. Determine the following:
What is the reorder point, if the lead time is 7 days?
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