A manufacturing company purchased 9000 parts of a machine


A manufacturing company purchased 9000 parts of a machine for its annual requirement ordering for a month usage at a time. Each part cost $20, the ordering cost per order is $15 and carrying charges are 15% of the average inventory per year. As a Material Engineer, you have been assigned to suggest a more economical policy for the company, what advise will you offer the company and how much will it save the company per year?

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Operation Management: A manufacturing company purchased 9000 parts of a machine
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