Annual demand for chairs is 5000 chairs and there are 250, Operation Management

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Annual demand for chairs is 5000 chairs and there are 250

Annual demand for chairs is 5000 chairs, and there are 250 selling days in a year. A chair costs $100 each, placing an order costs $40, and the time to recieve an order is 10 days. Your company's cost of capital is 9%

Part 1: Calculate the optimal order quantity, reorder point, and the total annual cost to manage the chair business.

Part 2: What are the average inventory levels (# of units), average inventory value, and inventory turnover in this situation?

Part 3: What happens in Part 1, if the order processing cost increases to $160 per order?

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Operation Management: Annual demand for chairs is 5000 chairs and there are 250

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Operation Management: Annual demand for chairs is 5000 chairs and there are 250

Reference No:- TGS01678723

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