Demand for the deskpro pc at best buy is d1000 unitsmo, Operation Management

Demand for the deskpro pc at best buy is d1000 unitsmo

Demand for the deskpro PC at Best Buy is D=1000 units/mo. Ordering cost=$4000/order, each PC costs $500 and holding costs are 20% of the cost/unit/yr.

a. How much should be ordered in each replenishment lot (EOQ)?

b. What is the # of orders/yr.?

c. What is the total cost of this ordering policy ?

d. What is the average flow time (EOQ/2D)?

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Operation Management: Demand for the deskpro pc at best buy is d1000 unitsmo

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Operation Management: Demand for the deskpro pc at best buy is d1000 unitsmo

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