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Doncouse_Jeremy_Week7 - Yes because the more orders that...

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Jeremy Doncouse MGMT408 Mountain State University Case Study 1. Compute the optimal order quantity of DVD players. 2. Determine the appropriate reorder point. 3. Compute the cost savings that the company will realize if it implements the optimal  inventory procurement decision. I don't know. 4. Should procurement costs be considered a linear function of the number of orders?
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Unformatted text preview: Yes, because the more orders that are placed the higher the total procurement costs. 1 order = $20 10 orders = $200 100 orders = $2,000 In other words, there is a direct correlation between the two....
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  • Spring '09
  • Unknown
  • optimal order quantity, appropriate reorder point, Mountain State University, Jeremy Doncouse, optimal  inventory procurement, total procurement costs.

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