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The Operations Manager at Freightliner Trucks orders truck batteries which cost $100 each. Freightliner uses an average of 12,500 batteries per month, and carrying a battery in inventory costs $10 annually. She knows that each order for these batteries costs $300 for clerical and delivery costs and order lead time is 6 days.
Required:
a. What is the economic order quantity?
b. What would be the time between orders?
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Answers: 3
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The Operations Manager at Freightliner Trucks orders truck batteries which cost $100 each. Freightli...
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