In the following scenario, what will your stockout costs be if you have 200 hammers in stock and you have orders of 80, 60, 50, 30, 120 You are a wholesaler selling hammers. You have a carrying cost for each hammer left in inventory of $.30 per unit, ordering cost of $60 per order placed, and a stockout cost of $30 per customer who is not fully satisfied and $3 per hammer for any orders not fulfilled (lost sales). Orders placed arrive in the sixth week after the week in which the order is placed. Smallest orders are filled first. $480 $1,080 $660 $450 $300

In the following scenario, what will your stockout costs be if you have 200 hammers in stock and you have orders of 80, 60, 50, 30, 120 You are a wholesaler selling hammers. You have a carrying cost for each hammer left in inventory of $.30 per unit, ordering cost of $60 per order placed, and a stockout cost of $30 per customer who is not fully satisfied and $3 per hammer for any orders not fulfilled (lost sales). Orders placed arrive in the sixth week after the week in which the order is placed. Smallest orders are filled first. $480 $1,080 $660 $450 $300

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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