YS Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires a 6-day lead time. The demand every quarter is 13,680 units. The ordering cost is P12.50 per order. (EOQ is 1,200 units). The desired safety stock if the maximum daily usage is 175 units is?
YS Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires a 6-day lead time. The demand every quarter is 13,680 units. The ordering cost is P12.50 per order. (EOQ is 1,200 units). The desired safety stock if the maximum daily usage is 175 units is?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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YS Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires a 6-day lead time. The demand every quarter is 13,680 units. The ordering cost is P12.50 per order. (EOQ is 1,200 units).
The desired safety stock if the maximum daily usage is 175 units is?
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