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A plant producing a line of hydraulic valves can supply the factory warehouse at rate of 750/month. The warehouse ships in Beirut harbor, to storage 3000 valves and some of hazardous materials per year at a unit selling price of 250 £. Considering the plant's ordering and set-up cost of 300 £ and the inventory carrying cost rate of 20%.
1-What quantity should the warehouse order from plant and number of orders/year, total cost, and lead time?
2- Clarify the safeguard precautions to protect and control the inventory to reduce the expected hazards?
Notes: Q = √(2 AN/CI) , Tc = Yc= CN + Q/2.CI + N.A/Q
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