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2. A company stocks an item whose average sales volume is 1,000 units/year. The item has a unit cost of $5/unit. The com
Posted: Sun Jul 03, 2022 1:00 pm
by answerhappygod
- 2 A Company Stocks An Item Whose Average Sales Volume Is 1 000 Units Year The Item Has A Unit Cost Of 5 Unit The Com 1 (65.93 KiB) Viewed 10 times
2. A
company stocks an item whose average sales volume is 1,000 units/year. The item has a unit cost of $5/unit. The
company's current operating policy is to replenish the inventory twice a year, and it yields an average cycle stock of 300 units/year. (a) Develop an exchange curve for total average cycle stock in $ versus total number of replenishments per year under an EOQ strategy. (b) Plot the current operating position on the graph. (c) For what values of K/i, the EOQ strategy would produce an improvement in both directions?