Business, 19.06.2020 03:57, ThatTrashPanda
Sams Job Shop buys one part- Tegdiws for use in its production system. The parts are needed throughout the entire 365-day year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Data for the product is as follows:
ITEM TEGDIW WIDGET
Annual demand 10,000 5,000
Holding cost (% of item cost) 20% 20%
Setup or order cost $ 150.00 $ 25.00
Lead time 4 weeks 1 weeks
Safety stock 55 units 5 units
Item cost $ 10.00 $ 2.00
Required:
What is the inventory control system for Tegdiws? That is, what is the reorder quantity and the reorder point for Tegdiws?
Answers: 1
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Sams Job Shop buys one part- Tegdiws for use in its production system. The parts are needed througho...
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