3.1 Demand for an item is constant at 1,000 units a year. Unit cost is £50, Rc reorder cost is £100, holding cost is 25 per cent of value a year and no shortages are allowed. Describe an optimal inventory policy for the item. What order size will give a variable cost within 10 per cent of optimal? What is the cost if suppliers only make deliveries of 200 units? C

3.1 Demand for an item is constant at 1,000 units a year. Unit cost is £50, Rc reorder cost is £100, holding cost is 25 per cent of value a year and no shortages are allowed. Describe an optimal inventory policy for the item. What order size will give a variable cost within 10 per cent of optimal? What is the cost if suppliers only make deliveries of 200 units? C

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 20AA

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