Huki is a distributor of 'Cotton Shirt,' with a weekly demand of 50 units. Each unit costs at $40 with reorder cost at $200 and holding cost at 25% of value a year. a. Determine the economic order quantity (EOQ), holding cost, ordering cost and total costs. a. If the provider could only deliver 50 units at a time, is there any additional expenses?

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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Huki is a distributor of 'Cotton Shirt,' with a weekly demand of 50 units. Each unit costs at $40 with reorder cost at $200 and holding cost at 25% of value a year.
a. Determine the economic order quantity (EOQ), holding cost, ordering cost and total costs.
a. If the provider could only deliver 50 units at a time, is there any additional expenses?

 

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