A Company Uses 2,750 Per Year of a Certain Subassembly

question 43

Essay

A company uses 2,750 per year of a certain subassembly that has a purchase cost of $450, and an annual holding cost of $500 per unit.Each order placed costs $150.The company operates 300 days per year and it has found that an order must be placed with the supplier 12 working days before it can expect to receive that order.For this subassembly, find:
(a)the economic order quantity.
(b)the reorder point.

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Definitions:

Research Mobilization

The process of moving research knowledge out of the academic sphere and into the hands of people and organizations who can put it to practical use.

Crowd Behavior

The actions, movements, and responses of a large number of people grouped together, often studied in the context of social events, protests, or gatherings.

Global Village

The term Global Village refers to how digital communication technology has virtually reduced the world to a smaller community, allowing people across the globe to connect instantaneously.

Tragedy Of The Commons

A type of social dilemma in which many individuals’ overexploitation of a public resource depletes or degrades that common resource.