A Company Uses 1,500 Per Year of a Certain Subassembly

question 96

Essay

A company uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 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 6 working days before it can expect to receive that order.For this subassembly, find:
(a)the economic order quantity.
(b)the annual holding cost.
(c)the annual ordering cost.
(d)the reorder point.

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Definitions:

Media Messages

Communications delivered through various media channels that can influence public opinion, behavior, and understanding of various issues.

Pathological Gambling

A disorder characterized by a persistent and recurrent maladaptive gambling behavior that disrupts personal, family, or vocational pursuits.

Neuroadaptation

The process by which the brain adapts to changes in its environment, often in response to the repeated use of substances, leading to dependence or tolerance.

Process Addiction

A type of addiction characterized by compulsive engagement in rewarding non-substance-related behavior despite adverse consequences.