What is the average inventory if total cost is minimized

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Reference no: EM132163548

Electronics supplies circuitry to a company that makes appliances. One of the components has a daily demand of 10 units and this constant throughout the year. Holding cost is $1.00 per unit per year and ordering cist is $20 per order.

To minimize total cost, how many units should be ordered each time an order is placed?

What is the average inventory if total cost is minimized?

Suppose that the ordering cost is not $20 and the business has been ordering 100 units each time an order is placed. Given Q=100, what would the ordering cost have to be?

If lead time averages 4 days with a standard deviation of 2 days, what is the reorder point if a stock out risk of 4% is desired?

Reference no: EM132163548

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