A company stocks an item that is consumed at the rate of 50 units per day. It costs the company P20 each time an order is placed. An inventory unit held for a week will cost P0.35. (a) Determine the optimum inventory policy assuming a lead time of 1 week. (b) Determine the optimum number of orders per year (365 days a year).
A company stocks an item that is consumed at the rate of 50 units per day. It costs the company P20 each time an order is placed. An inventory unit held for a week will cost P0.35. (a) Determine the optimum inventory policy assuming a lead time of 1 week. (b) Determine the optimum number of orders per year (365 days a year).
Chapter10: Inventory
Section: Chapter Questions
Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...
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