Exam 6: Inventory Control Models

Rolf Steps is the production manager for a local manufacturing firm.This company produces staplers and other items.The holding cost is $2 per unit per year.The cost of setting up the production line for this is $25.There are 200 working days per year.The production rate for this product is 80 per day.If the production order quantity is 200 units,what was the daily demand (rounded to the nearest whole unit)?

All of the following are used for marginal analysis with the normal distribution in a single period model except

A company uses 2,750 per year of a certain subassembly that has a purchase cost of $450,and an annual holding cost of $500 per unit.Each order placed costs $150.The company operates 300 days per year and it has found that an order must be placed with the supplier 12 working days before it can expect to receive that order.For this subassembly,find: (a)the economic order quantity. (b)the reorder point.