Can you do this problem in a single Excel sheet showing explaning the question and answer. Inventory Best Bicycles produces bikes and buys brakes from a supplier in Japan. The brake set for one bicycle costs $125, and it is $35 to process the order with the supplier. The company consistently sells 50 bicycles a week (for 52 weeks of the year) and holds a safety stock of 1 week of brake sets to cover the constant lead time (1 week) from Japan. The company uses a holding/carrying rate of 25%. 1. What is the EOQ for the brakes (round your answer up to the nearest whole number)? 2. What is the ROP for the brakes? 3. What is the total annual inventory cost for the brakes?
Can you do this problem in a single Excel sheet showing explaning the question and answer.
Inventory Best Bicycles produces bikes and buys brakes from a supplier in Japan. The brake set for one bicycle costs $125, and it is $35 to process the order with the supplier. The company consistently sells 50 bicycles a week (for 52 weeks of the year) and holds a safety stock of 1 week of brake sets to cover the constant lead time (1 week) from Japan. The company uses a holding/carrying rate of 25%.
1. What is the EOQ for the brakes (round your answer up to the nearest whole number)?
2. What is the ROP for the brakes?
3. What is the total annual inventory cost for the brakes?
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