The annual demand for an automobile component is 50,000 units. The carrying cost is Rs. 60/unit/year, the ordering cost is Rs. 200.00/order, and the shortage cost is Rs. 110.00/unit/year. Find the optimal values of the following: (a) Economic order quantity (b) Maximum inventory (c) Maximum shortage quantity

The annual demand for an automobile component is 50,000 units. The carrying cost is Rs. 60/unit/year, the ordering cost is Rs. 200.00/order, and the shortage cost is Rs. 110.00/unit/year. Find the optimal values of the following: (a) Economic order quantity (b) Maximum inventory (c) Maximum shortage quantity

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Description: The annual demand for an automobile component is 50,000 units. The carrying cost is Rs.60/unit/year, the ordering cost is Rs. 200.00/order, and the shortage cost is Rs. 110.00/unit/year.Find the optimal values of the following:(a) Economic order qua

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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