Calculate total annual ordering cost Calculate total annual carrying cost Calculate total annual inventory cost

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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A local TV repairs shop uses 36,000 units of a part each year (A maximum consumption of 100 units per working day). It costs RM20 to place and receive an order. The shop orders in lots of 400 units. It cost RM4 to carry one unit per year of inventory.

  1. Calculate total annual ordering cost
  2. Calculate total annual carrying cost
  3. Calculate total annual inventory cost
  4. Calculate the Economic Order Quantity
  5. Calculate the total annual cost inventory cost using EOQ inventory Policy
  6. How much is the saving if using EOQ?
  7. Compute re-ordering point assuming the lead time is 3 days.
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