Self-Assessment HW8B (Carrying Costs and Ordering Costs)
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School
University of Maryland, University College *
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Course
330 7980
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
docx
Pages
3
Uploaded by Dogmom87
Question
1
Post
Card
Depot,
a
large retailer
of
post
cards,
orders
7,156,013
post
cards
per
year
from
its
manufacturer.
Post
Card
Depot
plans
on
ordering
post
card
23
times
over
the
next
year.
Post
Card
Depot
receives
the
same
number
of
post
cards
each
time
it
orders.
The
carrying
cost
is
$0.13
per
post
card
per
year.
The
ordering
cost
is
$388
per
order.
What
are
the
annual
carrying
costs
of
post card
inventory
(round
the
answer
to
two
decimal
places)?
Your
Answer:
20223.52
J
Answer
W
Hide
Check
my
answer
Annual
carrying
costs
=
(average
inventory)
x
(carrying
cost
per
unif)
=
(Q/2)*C
where
:
Q
=
the
inventory
order
size
in
units
C
=
carrying
cost
per
unit.
Step
1
Calculate
Q
(the
inventory
order
size
in
units):
7,156,013/23
=
311,131
post
cards
Step
2:
Calculate
annual
carrying
cost:
(311,131
/2)
*
$0.13
=20.223.52
Question
2
Post
Card
Depot,
a
large
retailer
of
post
cards,
orders
6,321,485
post
cards
per
year
from
its
manufacturer.
Post
Card
Depot
plans
on
ordering
post
card
16
times
over
the
next
year.
Post
Card
Depot
receives
the
same
number
of
post
cards
each
time
it
orders.
The
carrying
cost
is
$0.24
per
post
card
per
year.
The ordering
cost
is
$358
per
order.
What
are
the
annual ordering
cost
of
the
post
card
inventory?
(Round
the
answer
to
two
decimal
places)
Your
Answer:
5728
Answer
w
Hide
Check
my
answer
Annual
ordering
costs
=
(number
of
orders)
X
(ordering
cost
per
order)
Where
§
=
total
demand
in
units
over
the
planning
period
0=
ordering
cost
per
order.
Annual
ordering
costs
=
168358
=
5,728
Question
3
Post
Card
Depot,
a
large
retailer
of
post
cards,
orders
6,663,811
post
cards
per
year
from
its
manufacturer.
Post
Card
Depot
plans
on
ordering
post
card
19
times
over
the
next
year.
Post
Card
Depot
receives
the
same
number
of
post
cards
each
time
it
orders.
The
carrying
cost
is
$0.26
per
post
card
per
year.
The
ordering
cost
is
$497
per
order.
What
are
the
annual
total
inventory
management
costs
of
post
card
inventory?
(Round
the
answer
to
two
decimal
places).
Your
Answer:
55051.18
Answer
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ay
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=
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spea
3sod
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=
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=
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:
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=
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xad
3505
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(L10jwaamr
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=
53500
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ds
51502
BULIZP0
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SuILLIED
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=
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[ENUUE
YT
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