iii) A manufacturing company has an expected usage of 50,000 units of certain product during the next year. The cost of
Posted: Mon May 02, 2022 9:35 am
iii) A manufacturing company has an expected usage of 50,000 units of certain product during the next year. The cost of processing an order is `20 and the carrying cost per unit is `0.50 for one year. Lead time on an order is five days and the company will keep a reserve supply of two days’ usage. You are required to calculate (a) the economic order quantity and (b) the reorder point. (14 marks)