a) b) Use this information to answer the following questions RobCo is a distributor of Protectron Security Robots. The annual demand for their Protrectrons is 10,880 units. These robots cost $6,200 each. The annual carrying cost for their warehouse is 29% and for their in-transit shipping it is 16%. Their ordering costs are $200 per order. They operate 320 days per year. The in-transit shipping time for this item is 7 days (this is also your Lead Time). How many units are in the average in-transit inventory? 168 O 238 O 173 O 130 What is the EOQ for this product? O 130 O 49 O 156 230

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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b)
Use this information to answer the following questions
RobCo is a distributor of Protectron Security Robots. The annual demand for their
Protrectrons is 10,880 units. These robots cost $6,200 each. The annual carrying
cost for their warehouse is 29% and for their in-transit shipping it is 16%. Their
ordering costs are $200 per order. They operate 320 days per year. The in-transit
shipping time for this item is 7 days (this is also your Lead Time).
How many units are in the average in-transit inventory?
168
O 238
O 173
O 130
What is the EOQ for this product?
O 130
O 49
O 156
O230
Transcribed Image Text:b) Use this information to answer the following questions RobCo is a distributor of Protectron Security Robots. The annual demand for their Protrectrons is 10,880 units. These robots cost $6,200 each. The annual carrying cost for their warehouse is 29% and for their in-transit shipping it is 16%. Their ordering costs are $200 per order. They operate 320 days per year. The in-transit shipping time for this item is 7 days (this is also your Lead Time). How many units are in the average in-transit inventory? 168 O 238 O 173 O 130 What is the EOQ for this product? O 130 O 49 O 156 O230
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