An electronics shop sells 6000 headphones in a year and the sales is relatively constant throughout the year. These headphones are purchased for SR 20.00 each, and the lead time is three days. The holding cost per headphone per year is 10% of the unit cost and the ordering cost per order is SR 75. There are 300 working days per year. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)?
An electronics shop sells 6000 headphones in a year and the sales is relatively constant throughout the year. These headphones are purchased for SR 20.00 each, and the lead time is three days. The holding cost per headphone per year is 10% of the unit cost and the ordering cost per order is SR 75. There are 300 working days per year. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 4
An electronics shop sells 6000 headphones in a year and the sales is relatively constant
throughout the year. These headphones are purchased for SR 20.00 each, and the lead
time is three days. The holding cost per headphone per year is 10% of the unit cost and
the ordering cost per order is SR 75. There are 300 working days per year. Calculate the
following:
(i) What is the annual holding cost?
(ii) In minimizing the cost, how many orders would be made each year?
(iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)?
Write the answer on the computer
Transcribed Image Text:Question 4
An electronics shop sells 6000 headphones in a year and the sales is relatively constant
throughout the year. These headphones are purchased for SR 20.00 each, and the lead
time is three days. The holding cost per headphone per year is 10% of the unit cost and
the ordering cost per order is SR 75. There are 300 working days per year. Calculate the
following:
(i) What is the annual holding cost?
(ii) In minimizing the cost, how many orders would be made each year?
(iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)?
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