b) Zamry Stationary Sdn Bhd purchases pens from a supplier from Segamat. The supplierselling price to the bookstore is at RM2.00 per unit. The cost for the bookstore to place anorder is at RM23 and the inventory/ carrying cost is RM0.10/unit/month. The managerestimates that the daily sales will be 134 units and the store open for 240 days in a year.The lead time from the time of order placement until receipt is 3 days. Based on theinformation below, calculate the following:i. The optimal order quantity (EOQ)ii.The numbers of ordersiii.The time between ordersiv.V.vi.vii.The inventory level at which the new order should be madeThe total annual holding costThe total annual setup costThe total annual cost

Given data: The selling price of a pen =2 per unit The cost for this bookstore to place an order=23…

Answered: ii. i. The optimal order quantity (EOQ)…

Business

Operations Management

ii. i. The optimal order quantity (EOQ) The numbers of orders The time between orders

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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