Question #2002261: op. man.


Question: 4 The H.A.L. Computer Store sells a printer for $200. Demand for this is constant during the year, and annual demand is forecasted to be 600 units. The holding cost is $20 per unit per year, while the cost of ordering is $60 per order. Currently, the company is ordering 12 times per year (50 units each time) with a total annual ordering and holding cost of $1,400. There are 250 working days per year and the lead time is 10 days.

(a) Is the annual total order and holding cost more or less than the optimal?

(b) If the company decides to keep a safety stock equal to 5 units, what is the reorder point?

Solution: The solution consists of 162 words (1 page)
Deliverables: Word Document

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