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Question: The local Toyota dealer has to decide how many spare shock absorbers of a particular type to order for repairing Toyota automobiles. This shock absorber has a demand of four units per month and costs $25 each. The carrying charge is 30 percent per year, and the ordering cost is $15 per order.
a. What is the EOQ for this item?
b. How often will the dealer reorder this part?
c. What is the annual cost of ordering and carrying this part?
What is the maximum number of orders waiting to be packed? If we double the packing capacity (from 60 to 120 orders per hour), what impact does this have on your answers in parts b, c, and d?
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Explain the strategic importance of process selection.
His estate refused to give Chris the stock, claiming their agreement was a personal satisfaction contract and only Stephen could decide whether Chris had earned
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