The annual demand of a product is 27.098; the holding cost, h, is $2.46 per unit per year, and the ordering cost, S, is $213 per order. Currently the manager orders 2.583 every time she orders; what is the annual ordering cost, SC?

The annual demand of a product is 27.098; the holding cost, h, is $2.46 per unit per year, and the ordering cost, S, is $213 per order. Currently the manager orders 2.583 every time she orders; what is the annual ordering cost, SC?

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Description: The annual demand of a product is 27.098; the holding cost, h, is $2.46 per unit per year, and the ordering cost, S, is $213 per order. Currently the manager orders 2.583 every time she orders; what is the annual ordering cost, SC?

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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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
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