Joe Henry's machine shop uses 2,530 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 2,530 Holding cost per bracket per year $1.65 Order cost per order $18.25 Lead time 2 days Working days per year 250 Part 2 a) What is the EOQ? enter your response here units (round your response to two decimal places). Part 3 b) What is the average inventory if the EOQ is used? enter your response here units (round your response to two decimal places). What would be the annual inventory holding cost? $enter your response here (round your response to two decimal places). Part 4 c) Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places). What would be the annual order cost? $enter your response here (round your response to two decimal places). Part 5 d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $enter your response here (round your response to two decimal places). Part 6 e) What is the time between orders? enter your response here days (round your response to two decimal places). Part 7 f) What is the reorder point (ROP)? enter your response here units (round your response to two decimal places).

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...

a)	What is the EOQ? enter your response here units (round your response to two decimal places).

b)	What is the average inventory if the EOQ is used? enter your response here units (round your response to two decimal places).
	What would be the annual inventory holding cost? $enter your response here (round your response to two decimal places).

c)	Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places).
	What would be the annual order cost? $enter your response here (round your response to two decimal places).

d)	Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $enter your response here (round your response to two decimal places).