Question
We supply high precision robotic arm gears with:
- Purchase Cost: of $400,000
- Sales Price: $700,000
- Lead Time Days: 400
- Cost of Capital: 12%
- Expected Annual Demand: 8 Units
What is the Optimal Stocking Level for the Part?
Bonus Question
What is the Optimal Stocking Level under all demand scenarios?
Final Question
Which scenario is most profitable?
