The head buyer of a Flat Screen TV wants to determine the most optimum inventory practice for the company. She was able to determine the demand and inventory costs needed in her analysis. The annual demand is 10,000 units. The cost is Php1000 per unit per year. The production rate is 50 units per day and there are 250 working days per year. Solve the following and show your solution: a. Daily Demand b. Economic Order Quantity C. Production Cycle d. Production Run per year e. Annual Set-up f. Maximum Inventory g. Minimum Inventory h. Average Inventory i. Annual Holding Inventory Total Inventory Cost

The head buyer of a Flat Screen TV wants to determine the most optimum inventory practice for the company. She was able to determine the demand and inventory costs needed in her analysis. The annual demand is 10,000 units. The cost is Php1000 per unit per year. The production rate is 50 units per day and there are 250 working days per year. Solve the following and show your solution: a. Daily Demand b. Economic Order Quantity C. Production Cycle d. Production Run per year e. Annual Set-up f. Maximum Inventory g. Minimum Inventory h. Average Inventory i. Annual Holding Inventory Total Inventory Cost

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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