This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: a robotics integrator uses 120 micro processors annually, ordering costs are $25, annual holding costs are 10%, each micro processor costs $200. What is the recommend EOQ? 2 2(120)(25) 17.32 17 20 DS h = = = What is the total annual cost for ordering and holding inventory? 17 120 20 25 $170 $176.47 $346.47 2 2 17 Q D TC h S Q = + = + = + = 3. The manager of Joe’s Transmission Repair requires a safety stock of 2 Ford Taurus transmissions in stock at all times. Weekly demand for Ford Taurus transmissions is 2 and the lead-time from the re-manufacturer is four weeks. What is the reorder point (Basic ROP)? **Simple Reorder Point with specified safety stock** ( 29 ( 29 * safety stock = 4*2 2 10 ROP LT d = + + =...
View Full Document
This note was uploaded on 05/14/2010 for the course EBTM 365 taught by Professor Porterfield during the Spring '10 term at Towson.
- Spring '10