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Lee Cycles produces bicycles and buys brakes from a supplier in Japan. The brake set for one bicycle costs $125, and it is $35 to process the order with the supplier. The company consistently sells 50 bicycles a week (for 52 weeks of the year) and holds an average of 2 weeks of brake sets in inventory to cover the constant lead time from Japan. The company uses a holding/carrying rate of 20%.
a. What is the average inventory carrying/holding cost for the brakes?
b. What is the EOQ for this product?
c. What buying strategy would be most appropriate for the brakes and why?
After reading the chapter and viewing the video on franchising - would you ever want to open a franchise? Explain why or why not?. And if you answer yes - which franchise would be most appealing to you? Why or why not? Whether you would or would not..
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Determining the need for labor, machines, physical resources to meet the production objectives o the firm is called:
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