noluing cost is $2.00 per unit per year. housing Manager estimates at the ordening a. Calculate the Economic Order Quantity (EOQ), Annual Ordering Cost, Annual Holding Cost and Total Annual Inventory Cost under unfavorable and favorable market conditions. b. 12 BOIN The Purchasing & Warehousing Manager identified two improvement projects in conjunction with her team: Project A: Reduction of ordering cost to $18.00. Project B: Reduction of holding cost to $1.40 per unit per year. Which project would result in greater reduction of the EOQ and Total Annual Inventory Cost? Which of the projects would you recommend and why? Show all your calculations.
noluing cost is $2.00 per unit per year. housing Manager estimates at the ordening a. Calculate the Economic Order Quantity (EOQ), Annual Ordering Cost, Annual Holding Cost and Total Annual Inventory Cost under unfavorable and favorable market conditions. b. 12 BOIN The Purchasing & Warehousing Manager identified two improvement projects in conjunction with her team: Project A: Reduction of ordering cost to $18.00. Project B: Reduction of holding cost to $1.40 per unit per year. Which project would result in greater reduction of the EOQ and Total Annual Inventory Cost? Which of the projects would you recommend and why? Show all your calculations.
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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