Inventory Solution

Southern New Hampshire University

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Inventory Solution(Rose White’s machine shop)
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2

mei 2022

2020/2021
Rose White’s machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of holding cost) and the ordering cost per order is $18.75. There are 250 working days per year. (a) What is the EOQ? (b) Given the EOQ, what is the average inventory? What is the annual inventory holdi...
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