1. What's the term for something that seems to be contradictory, but at the same time is perfectly true?
1 answer:
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Answer:
a) 1,600
b) 20
C) every 18.25 days
d) 4,800 dollars
Explanation:
<u>Where: </u>
D = annual demand = 32,000 units
S= setup cost = ordering cost = $120
H= Holding Cost = $3.00
EOQ = 1600
orders per year:
32,000 / 1,600 = 20 order per year
days between orders:
365 days per year / 20 order per year = 18.25 days
inventory cost:
average inventory: 1,600 / 2 = 800 units of inventory
800 x $3 holding cost + 20 orders at $120 each
2,400 + 2,400 = 4,800