HighLife Corporation has the following information: Average demand = 30 units per day Average lead time = 40 days
Item unit cost = $45 for orders of less than 400 units Item unit cost = $40 for orders of 400 units or more Ordering cost = $50
Inventory carrying cost = 15 percent The business year is 300 days.
Standard deviation of demand during lead time = 90 Desired service level = 95 percent
What is the TAC at $40/unit?(pick the number closest to the correct answer)
A)$351,750
B)$362,325
C)$355,840
D)$362,240

Question

Quizplus · Accepted Answer

The Answer of HighLife Corporation has the following information: Average demand = 30 units per day Average lead time = 40 days
Item unit cost = $45 for orders of less than 400 units Item unit cost = $40 for orders of 400 units or more Ordering cost = $50
Inventory carrying cost = 15 percent The business year is 300 days.
Standard deviation of demand during lead time = 90 Desired service level = 95 percent
What is the TAC at $40/unit?(pick the number closest to the correct answer)
A)$351,750
B)$362,325
C)$355,840
D)$362,240

HighLife Corporation Has the Following Information: Average Demand = 30