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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
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Phoniex University
Oct-2001 - Nov-2016
One of the examples in this chapter dealt with determining the optimal reorder point for a computer monitor sold by Millennium Computer Corp. Suppose that it costs MCC $0.30 per day in holding costs for each monitor in beginning inventory, and it costs $20 to place an order. Each monitor sold generates a profit of $45, and each lost sale results in an opportunity cost of $65 (including the lost profit of $45 and $20 in lost goodwill). Modify the spreadsheet shown in Figure 12.23 to determine the reorder point and order quantity that maximize the average monthly profit associated with this monitor
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