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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 756 |
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If we use EOQ Policy we can save $2956.25 per year.
Now we will look at finished Products CLM:
The ELS for CLM should be calculated using ECONOMIC LOT SIZE WITH FINITE RATE OF REPLENISHMENT (Production Model) as the data has all the characteristics of the model.
Assumptions of Production model are as follows;
- Annual demand, carrying cost and ordering cost are deterministic...
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If we use EOQ Policy we can save $2956.25 per year.
Now we will look at finished Products CLM:
The ELS for CLM should be calculated using ECONOMIC LOT SIZE WITH FINITE RATE OF REPLENISHMENT (Production Model) as the data has all the characteristics of the model.
Assumptions of Production model are as follows;
- Annual demand, carrying cost and ordering cost are deterministic...
Essay fragment
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