In a traditional forecast driven manufacturing operation,What would be the EOQ?What would be the average inventory level in units, and in dollars?In a demand-based, synchronous manufacturing operation

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  1. In a traditional forecast driven manufacturing operation,

    • What would be the EOQ?
    • What would be the average inventory level in units, and in dollars?
  2. In a demand-based, synchronous manufacturing operation, assume C = $10, with the changeover time reductions seen in synchronous manufacturing.

    • What would be the new EOQ?
    • What would be the new average inventory level in units, and in dollars?
  3. Assuming the carrying cost of inventory is 30%, what is the dollar savings in inventory needed?
  4. What conclusions can you reach about the impact on the company’s overall ROI when switching to demand-based, synchronous manufacturing?

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