How much time will elapse between orders

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Reference no: EM131368713

The company has a demand of 45,000 components pa. They cost $4.50 each. There is no lead time between order and delivery, and ordering costs amount to $100 per order. The annual cost of holding one component in inventory is estimated to be $0.65.

A 0.5% discount is available on orders of at least 3,000 components and a 0.75% discount is available if the order quantity is 6,000 components or above.

a) what is the company’s EOQ?

b) What is the minimum TMC?

c) How much time will elapse between orders?

d) How many orders per year will be place?

Reference no: EM131368713

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