compute annual RTC based on EOQ. A(20-1)-EOQ for a retailer....
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compute annual RTC based on EOQ.
A(20-1)-EOQ for a retailer. The Home Serve Corporation provides a wide range of household essentials to householders. One of the products it offers is dotted paper rolls, used in kitchens and toilets. The supplier for the dotted paper rolls pays all incoming freight. No incoming inspection of the paper roll is necessary because the supplier has a track record of delivering high-quality merchandise. The purchasing officer of the HomeServe Corporation has collected the following information: Annual demand for dotted paper rolls Ordering cost per purchase order Carrying cost per year Safety-stock requirements Cost of dotted paper rolls 24,200 rolls $175 15% of purchase costs None $10 per roll The purchasing lead time is 4 weeks. The HomeServe Corporation is open 260 days a year (52 weeks for 5 days a week). D * P Q Q*C 2 (0%)+( RTC = 0 + c = +
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