Section B: Quantitative 1. Frankfurt Electronics buys a component from a supplier. T 36,000 units,...
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Section B: Quantitative 1. Frankfurt Electronics buys a component from a supplier. T 36,000 units, order cost is S 150 per order, the annual holding rate is 30% and the component costs If the plant operates 360 days in a year and has a lead time of 4 days, determine the following a. The Economic Order Quantity (EO(10 points) The annual demand for the component is S80 b. The Reorder Quantity (ROQ) (5 points) c. Total Annual Inventory Cost (TAIC) (5 points) d. Number of Orders per year (OPY) (5 points) e. Cycle Time (Te). (5 points) 61Page
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