Al Khaleej Inc. needs 315 kgs of a material per month. It costs RO 100 to make and receive an order, and it takes 16 work days to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 6 days per week. What is the best annual total holding and ordering cost in RO? Round-up to the nearest integer Select one: O a. 152 O b. 725 O c 625 O d. None is correct O e. 615

Al Khaleej Inc. needs 315 kgs of a material per month. It costs RO 100 to make and receive an order, and it takes 16 work days to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 6 days per week. What is the best annual total holding and ordering cost in RO? Round-up to the nearest integer Select one: O a. 152 O b. 725 O c 625 O d. None is correct O e. 615

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
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4. Distinguish between physical inventory systems and perpetual inventory systems. Give an example of a company that would use each.
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Describe what is safety stock and what it provides safety against in inventory management ?
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