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GIVEN:Annual Units:126,000
Cost per order:$4
Carrying cost per unit:$1.008 per unit
Lead Time:4 weeks
1. What is the ideal amount of inventory?
2. What is the amount of Safety Stock?
3. When do you place an order?
4. What is the order size?
5. What is the average inventory on hand?
6. What are the annual ordering costs?
7. What are the annual carrying costs.
8. Give an example of an ordering cost. Give an example of a carrying cost.
Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity.
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