Monday
November 24, 2014

Homework Help: Business

Posted by Jackson on Monday, September 20, 2010 at 8:19am.

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomass fastest moving inventory item has a demand of 6000 units per year. The cost of each unit is $100.00, and the inventory carrying cost is $10.00 per unit per year. The average ordering cost is $30.00 per order. It takes about 5 days for an order to arrive, and demand for 1 week is 120 units (this is a corporate operation, there are 250 working days per year).

a. What is the EOQ?
b. What is the average inventory if the EOQ is used?
c. What is the optimal number of orders per year?
d. What is the optimal number of days in between any two orders?
e. What is the annual cost of ordering and holding and holding inventory?
f. What is the total annual inventory cost, including cost of the 6,000 units?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Business Math - As a newly hired staff accountant for Jordan Designs, you have ...
Math - Tracy Company, a manufacturer of air conditioners, sold 100 units to ...
Math - Anticipating a large demand for a toy and Increased inventory 1600 by 25...
Quantitative Methods - The reorder point [see equation 14.6] is defined as the ...
math - You manage inventory for your company and use a continuous review ...
math - weekly demand data have been analyzed yielding the probability mass fnc. ...
BUSINESS - Describe the kinds of inventory federal express corporation holds. ...
accounting - Can someone please check my answer to this question: In recent ...
math - Imagine that you're the manager of the Candle Shop. Figures C-1 contains ...
business - Returned $200 of the inventory that it had purchased because the ...

Search
Members