An item has the following information:
Setup cost/setup, S = $200/order Annual demand, D = 630,000 units/year
Carrying cost/unit-year, H = $0.60/unit-yr Production rate = 3,000/day
Assume 300 working days in a year.
Determine:
(1) The POQ.
(2) Number of orders per year.
(3) Number of days between orders.
(4) Ordering cost per year.
(5) Carrying cost per year.
(6) Total cost per year.
(7) Average inventory.
Inventory turnover.
The production cost/unit if the carrying cost %/year = 40%.
The production lead time.