Self-Assessment HW8B (Carrying Costs and Ordering Costs)

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University of Maryland, University College *

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330 7980

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Industrial Engineering

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Dec 6, 2023

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docx

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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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