Essay
The XYZ Company has an assembly plant in Cincinnati and its parts plant in Indianapolis.Parts are transported from Indianapolis to Cincinnati using trucks.Each shipment costs $100.The Cincinnati plant assembles and sells 300 finished products each day and operates 5 days a week and 50 weeks a year.Part #456 costs $50 and XYZ Company incurs a holding cost of 20 percent per year.How many of part #456 should XYZ Company put in each shipment? What is the cycle inventory of part #456 at XYZ Company?
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Correct Answer:
Verified
= = 1224.74...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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