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6. Annual demand for an item is 100,000 units. Cost of placing an order is 40 USD. Unit variable cost is 10 USD. Invento
Posted: Tue Apr 26, 2022 5:00 pm
by answerhappygod
- 6 Annual Demand For An Item Is 100 000 Units Cost Of Placing An Order Is 40 Usd Unit Variable Cost Is 10 Usd Invento 1 (25.63 KiB) Viewed 38 times
6. Annual demand for an item is 100,000 units. Cost of placing an order is 40 USD. Unit variable cost is 10 USD. Inventory holding rate is 20%. Backorder cost is 2 USD/unit. All shortages are backordered. The entire lot is delivered in one shipment. Determine: a. Economic lot size and the optimum number of units backordered b. The reorder point if the lead time is 1 month c. Average and maximum values of the inventory level and backorder level. d. What fraction of total demand will be delivered late? e. What will be the average waiting time for the items backordered?