OPERATIONS MANAGEMENTW/OML LAB >C<
OPERATIONS MANAGEMENTW/OML LAB >C<
17th Edition
ISBN: 9781323432464
Author: HEIZER
Publisher: PEARSON C
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Chapter 16, Problem 9P

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••• 16.6 Discount-Mart (see Problem 16.5), as part of its new JIT program, has signed a long-term contract with Specialty Lighting and will place orders electronically for its halogen lamps. Ordering costs will drop to $.50 per order, but Discount-Mart also reassessed its carrying costs and raised them to $20 per lamp.

  1. a. What is the new economic order quantity?
  2. b. How many orders will now be placed?
  3. c. What is the total annual cost of managing the inventory with this policy?
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