1 the annual demand for a product is 8000 units, Operation Management

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1 the annual demand for a product is 8000 units

1. The annual demand for a product is 8,000 units. The order cost is $30 for a single order. The cost of the item is $10 and the holding cost has been calculated at $3 to carry one item in stock for one year.

Calculate:

(a) The optimum order quantity

(b) The number of orders to be placed annually and

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Operation Management: 1 the annual demand for a product is 8000 units

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Operation Management: 1 the annual demand for a product is 8000 units

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