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Operations Management: Processes and Supply Chains, 12th Edition
book

Operations Management: Processes and Supply Chains, 12th Edition

by Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
January 2018
Intermediate to advanced content levelIntermediate to advanced
480 pages
236h 9m
English
Pearson
Content preview from Operations Management: Processes and Supply Chains, 12th Edition

Long description

The data provided for explaining the E O Q model are as follows. In the first table, the cells with the figures are shaded yellow.

Annual demand rate, D 936
Order cost, S 45
Holding cost percent 25%
Unit price, P 60
Order quantity, Q star Optimal, 75 Other, 390
Maximum inventory Optimal, 75 Other, 390
Average inventory Optimal, 37 Other, 195
Number of orders per year Optimal, 12.49 Other, 2.40
Annual holding cost Optimal, $562.05 Other, $2,925.00
Annual ordering cost Optimal, $562.05 Other, $108.00
Total Optimal, $1,124.10 Other, $3,033.00
Difference $1,908.90
% Difference 169.82%

The Inventory: Cost versus Quantity graph has a U-shaped total cost curve, a downward sloping order cost curve, and a linear ...

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Publisher Resources

ISBN: 9780134741062