Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 49

Each day, a company uses 120 bags of industrial cleaner. The bags can be shipped to the company each day at a rate of 200. The cost of placing an order is $90, and the carrying charge is 15% of the item's $30 cost. The company operates 360 days per year. Calculate the order quantity that minimizes the company's inventory-associated costs. How many days are there between orders for the order quantity you calculated?