Business, 10.02.2021 22:30 aniecethompkins82

Imagine It manufactures 3D printers and purchases one of the components used in the printers from a supplier in the U. S. Imagine it uses 4,000 of these components per year at a cost of $160 each.
The components are used evenly in the production process throughout a 360-day production year. The company estimates that it
costs $20 to place a single purchase order and about $100 to carry each component in inventory for a year since it must be stored in a
climate-controlled unit.
Delivery from the supplier generally takes two days, but it can take as many as six days. The days of delivery time and the percentage
of their occurrence are shown in the following tabulation:
Skipped
eBook
Delivery Time
(Days)
2
3
4
5
Print
Percentage
of Occurrence
75
10
5
5
5
References
100
Required:
1. Compute the EOQ.
EO
component
2. Assume that the company is willina to assume a 15% risk of being out of stock. What is the safety stock? The reorder point?

Answers: 2

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