Suppose that Westside Auto, with D = 13,600 units per year, Ch = (2.2)(0.5) = $1.1,...

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Suppose that Westside Auto, with D = 13,600 units per year, Ch = (2.2)(0.5) = $1.1,...

Suppose that Westside Auto, with D = 13,600 units per year, C_h = (2.2)(0.5) = $1.1, and C_o = $22, decided to operate with a backorder inventory policy. Backorder costs are estimated to be $4 per unit per year. Westside has 250 working days per year. Identify the following:

Minimum cost order quantity. If required, round your answer to two decimal places.

Q^* =
Maximum number of backorders. If required, round your answer to two decimal places.

S^* =
Maximum Inventory. If required, round your answer to two decimal places.
Cycle time. If required, round your answer to two decimal places.

T = days
Total annual cost. If required, round your answer to the nearest cent.

$

business accounting

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Answer 1

Answer #1

(a) calculation of cycle time as followse The anual demand is 13600 units. Therefore, the , daily demand is 13600/365 2 37:26

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Answer 2

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