Scary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 800 cases every 3 months from Scary Clowns. Scary Clowns incurs setup costs of $5,000 every time it produces these cases, and its annual holding cost per case is $14. Question content area bottom Part 1 a. Which inventory model fits the best to this problem? A.All-units quantity discounts model B. Incremental quantity discounts model C.One-time sale model D. EOQ model E. POQ model F. Lumpy demand model b. Scary Clowns should produce enter your response here units in each batch (round your response to the nearest integer). c. The total annual setup and holding cost for Scary Clowns using this policy is $enter your response here (round your response to the nearest
Scary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 800 cases every 3 months from Scary Clowns. Scary Clowns incurs setup costs of $5,000 every time it produces these cases, and its annual holding cost per case is $14. Question content area bottom Part 1 a. Which inventory model fits the best to this problem? A.All-units quantity discounts model B. Incremental quantity discounts model C.One-time sale model D. EOQ model E. POQ model F. Lumpy demand model b. Scary Clowns should produce enter your response here units in each batch (round your response to the nearest integer). c. The total annual setup and holding cost for Scary Clowns using this policy is $enter your response here (round your response to the nearest
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Scary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 800 cases every 3 months from Scary Clowns. Scary Clowns incurs setup costs of $5,000 every time it produces these cases, and its annual holding cost per case is $14.
Question content area bottom
Part 1
a. Which inventory model fits the best to this problem?
A.
All-units quantity discounts model
B.
Incremental quantity discounts model
C.
One-time sale model
D.
EOQ model
E.
POQ model
F.
Lumpy demand model
b. Scary Clowns should produce enter your response here units in each batch (round your response to the nearest integer).
c. The total annual setup and holding cost for Scary Clowns using this policy is $enter your response here (round your response to the nearest
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