Given Information Service Level - 95% (z value= 1.6649) Order Cost - $125 Order Cycle (weeks) - 4, 5, 6, 7, 8 Lead Time (weeks) - 2 weeks Operating Time - 52 weeks Standard deviation = 69.3237 Variable Holding Cost - 12.019% Fixed Holding Cost - 1,659,317.307 QUESTION: Compute for annual variable holding cost. Formula Given: (EOQ/2) x (Unit cost x Percentage Value of Inventory)
Given Information Service Level - 95% (z value= 1.6649) Order Cost - $125 Order Cycle (weeks) - 4, 5, 6, 7, 8 Lead Time (weeks) - 2 weeks Operating Time - 52 weeks Standard deviation = 69.3237 Variable Holding Cost - 12.019% Fixed Holding Cost - 1,659,317.307 QUESTION: Compute for annual variable holding cost. Formula Given: (EOQ/2) x (Unit cost x Percentage Value of Inventory)
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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Given Information
Service Level - 95% (z value= 1.6649)
Order Cost - $125
Order Cycle (weeks) - 4, 5, 6, 7, 8
Lead Time (weeks) - 2 weeks
Operating Time - 52 weeks
Standard deviation = 69.3237
Variable Holding Cost - 12.019%
Fixed Holding Cost - 1,659,317.307
QUESTION:
Compute for annual variable holding cost.
Formula Given:
(EOQ/2) x (Unit cost x Percentage Value of Inventory)
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