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Phillip Flamm's Computer Store in Texas sells a printer for $150. Demand is constant during the year, and annual demand is forecasted to be 960 units. Holding cost is $10 per unit per year, whereas the cost of ordering is $50 per order. Currently, the company is ordering 12 times per year (80 units each time). There are 250 working days per year, and the lead time is 13 days.

Phillip Flamm's Computer Store in Texas sells a printer for $150. Demand is constant during the year, and annual demand is forecasted to be 960 units. Holding cost is $10 per unit per year, whereas the cost of ordering is $50 per order. Currently, the company is ordering 12 times per year (80 units each time). There are 250 working days per year, and the lead time is 13 days.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Operation mangement

a) Given the current policy of ordering 80 units at a​ time, the total of the annual ordering cost and the annual holding cost is $_____​(round your response to the nearest whole​ number).

 

b and c in image

Phillip Flamm's Computer Store in Texas sells a printer for $150. Demand is constant during the year, and annual demand is forecasted to be 960 units. Holding cost is $10 per unit per year, whereas the cost of ordering is $50 per order. Currently, the company is ordering 12 times per year (80 units each time). There are 250 working days per year, and the lead time is 13 days.
Transcribed Image Text:Phillip Flamm's Computer Store in Texas sells a printer for $150. Demand is constant during the year, and annual demand is forecasted to be 960 units. Holding cost is $10 per unit per year, whereas the cost of ordering is $50 per order. Currently, the company is ordering 12 times per year (80 units each time). There are 250 working days per year, and the lead time is 13 days.
b) If the company used the absolute best inventory policy, the total of ordering and holding cost is $ (round your response to the nearest whole number). c) The reorder point is units (round your response to the nearest whole number).
Transcribed Image Text:b) If the company used the absolute best inventory policy, the total of ordering and holding cost is $ (round your response to the nearest whole number). c) The reorder point is units (round your response to the nearest whole number).
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