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  3. problem 4 you manage the inventory of smart tvs in...

Question: problem 4 you manage the inventory of smart tvs in...

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Problem 4. You manage the inventory of smart TVs in a distribution center. The demand is constant at 2,800 TVs per month and there is a monthly holding cost of $15 per TV. Youve been using EOQ to determine the order quantity, and currently do not backorder any demand. However, you are considering goodwill. allowing backorders, and you estimate a corresponding cost of S55 per unit per month in custome:r i) What would be the percentage of demand met from back orders if you optimize your reorder ii) Suppose you keep your current order quantity but optimize the reorder point with respect to iii) Considering the same situation as in (ii), how would your maximum inventory change, in iv) Suppose you re-optimize the order quantity to consider backorders. Is your new quantity larger or point with respect to holding and backorder cost, regardless of the order quantity? holding and backorder cost. Excluding purchasing cost (i.e. variable order cost), by what percentage would your monthly cost change? percentage terms? smaller? In percentage terms, by how much does the quantity change?

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