Total annual ordering cost__________?Total annual inventory carrying cost __________? Let's return to the class example. My cleaning company uses 12,000 rolls of paper towels annually. I pay 30per order in ordering cost. Annual per-roll inventory carrying cost is 10% of the unit cost. Each roll costs $2;thus, the annual per-roll inventory carrying cost is S.20. IfI place an order for 1,000 rolls each month, the totalannual ordering cost and inventory carrying cost is $172. Assume 360 days per year.I can get a discount of a nickel per roll if I order 2,000 rolls at a time. Under this option, what isthe annual ordering cost and annual inventory carrying cost? SHOW ALL WORK, else NO CREDIT.

Answered: I can get a discount of a nickel per…

I can get a discount of a nickel per roll if I order 2,000 rolls at a time. Under this option, what is the annual ordering cost and annual inventory carrying cost? SHOW ALL WORK, else NO CREDIT.

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...

See similar textbooks

Similar questions

Daily demand (d) 150 units Mean lead time (LT) 9 days Standard deviation of lead time (σLT) 3 days Service level 97% 1. What is the required safety stock at a 97 percent service level? ______ units 2. What is the reorder point? ______ units
Please do not give solution in image format thanku
Explain inventory position (IP)?
If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, what is the EOQ lot size?
Beginning Quantity Ending Inventory Order? Lost Week Demand inventory on-order inventory position (yes/no) Sales 1 100 53 2 40 3 36 4 38 5 55 6 34 7 30 8 31 9 40 10 57 11 30 12 53
Question 3 Which of the following Inventory Holding Costs refers to the cost associated with return on the investment in inventory? Service Capital Cost Space Risk
What is ABC inventory system?
I) annual usage - 1151 pcs Placement cost - 91 Rupees Storage cost - 8 Rupees Compute the reorder quantity/ EOQ ?
Define total ordering cost (TOC)
Question 7 Firm develop new products to a.gain market share and build brand equity b.keep their research and development teams gainfully employed c.take up slack in capacity d.gain first mover advantage and eliminate waste Question 8 Economic order quantity (EOQ) assumes all of the following conditions apply .demand is known and is constant over time .there are no shortages allowed.lead time for the receipt of orders is constant.Order quantity is received all at once true or false? question 10 Trade-offs in the new product development relate to A.Product / service design, time to market and profitability B.Proft. Expenditure and market share C.Time. cost and quality D.Market reach, product / service design and timing
Question 8 What of the following best describes just-in-time inventory management? A firm minimises the time lags present in the supply chain by maintaining a certain amount of inventory to use in these lag times Inventory is maintained as a buffer to meet uncertainties in demand, supply, and movements of goods Production inefficiencies arising when production capacity stands idle for lack of materials are minimised by holding a small stock of essentials at all times A firm acquires inventory precisely when needed so that its inventory balance is always at, or close to, zero
Given: Demand = 1248 items per year, Inventory period or Time between orders = 13 weeks. Q5.1. Calculate Lot Size or Order Quantity