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Business
Operations Management
Annual demand: 2,500 Holding cost per bracket per year: $1.50 Order cost per order: $18.75 Lead time: 2 days Working days per year: 250

Annual demand: 2,500 Holding cost per bracket per year: $1.50 Order cost per order: $18.75 Lead time: 2 days Working days per year: 250

Practical Management Science
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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Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The fo llowing information is known about the brackets:                                                                                                                                                                    a) Given the information, what would be the economic order quantity (EOQ)?
b) Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost?
c) Given the EOQ, how many orders would be made each year? What would be the annual order cost?
d) Given the EOQ, what is the total annual cost of managing the inventory?
e) What is the time between orders?
f) What is the reorder point (ROP)?
Annual demand: 2,500 Holding cost per bracket per year: $1.50 Order cost per order: $18.75 Lead time: 2 days Working days per year: 250
Transcribed Image Text:Annual demand: 2,500 Holding cost per bracket per year: $1.50 Order cost per order: $18.75 Lead time: 2 days Working days per year: 250
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