Determine order quantity also reorder point under assumption

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Q. Jim Costanzo is a new manager with Dell Computers. He believes which each employee in his division must receive instructions about a particular operation from only one person in order to avoid conflicting instructions also any confusion, According to Fayol.

Q. We are given subsequent information for a product: Order cost = $50 Annual demand = N(960, 3072.49) annual holding cost = $6/item/year shortage cost = $80 per unit lead time = one month sales price = $40 per unit product cost = $30 per unit Determine order quantity also reorder point under assumption which all demands are backordered.

Reference no: EM1377258

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