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Joe Henry's machine shop uses 2,520 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,520 Holding cost per bracket per year Order cost per order $1.55 $19.00 2 days Lead time Working days per year 250 a) What is the EOQ? units (round your response to two decimal places). b)What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? $ units (round your response to two decimal places). (round your response to two decimal places). c)Given the EOQ, how many orders will be made annually? orders (round your response to two decimal places). What would be the annual order cost? $ (round your response to two decimal places). d)Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ (round your response to two decimal places).

Joe Henry's machine shop uses 2,520 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,520 Holding cost per bracket per year Order cost per order $1.55 $19.00 2 days Lead time Working days per year 250 a) What is the EOQ? units (round your response to two decimal places). b)What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? $ units (round your response to two decimal places). (round your response to two decimal places). c)Given the EOQ, how many orders will be made annually? orders (round your response to two decimal places). What would be the annual order cost? $ (round your response to two decimal places). d)Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ (round your response to two decimal places).

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 2,520 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,520 Holding cost per bracket per year Order cost per order $1.55 $19.00 Lead time 2 days Working days per year 250 a) What is the EOQ? units (round your response to two decimal places). b)What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? $ units (round your response to two decimal places). (round your response to two decimal places). c)Given the EOQ, how many orders will be made annually? orders (round your response to two decimal places). What would be the annual order cost? $ (round your response to two decimal places). d)Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ (round your response to two decimal places). e)What is the time between orders? days (round your response to two decimal places). f) What is the reorder point (ROP)? units (round your response to two decimal places).
Transcribed Image Text:Joe Henry's machine shop uses 2,520 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,520 Holding cost per bracket per year Order cost per order $1.55 $19.00 Lead time 2 days Working days per year 250 a) What is the EOQ? units (round your response to two decimal places). b)What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? $ units (round your response to two decimal places). (round your response to two decimal places). c)Given the EOQ, how many orders will be made annually? orders (round your response to two decimal places). What would be the annual order cost? $ (round your response to two decimal places). d)Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ (round your response to two decimal places). e)What is the time between orders? days (round your response to two decimal places). f) What is the reorder point (ROP)? units (round your response to two decimal places).
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d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? (round your response to two decimal places)

e) What is the time between orders? [   ] days ( round your response to two decimal places.

f) What is the reorder point (ROP)? [   ] units (round your response to two decimal places)

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