**Inventory Management Problem:**Jordin Henry's machine shop uses 2,470 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**: 2,470- **Holding Cost per Bracket per Year**: $1.65- **Order Cost per Order**: $19.00- **Lead Time**: 2 days- **Working Days per Year**: 250**Questions for Calculation:**a) **What is the Economic Order Quantity (EOQ)?** [ ] units (round your response to two decimal places).b) **What is the average inventory if the EOQ is used?** [ ] units (round your response to two decimal places). **What would be the annual inventory holding cost?** $[ ] (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).

Answered: Jordin Henry's machine shop uses 2,470…

Practical Management Science

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Chapter2: Introduction To Spreadsheet Modeling

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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)?
Abey Kuruvilla, of Parkside Plumbing, uses 1,250 of a certain spare part that costs $26 for each order, with an annual holding cost of $27. a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). b) What is the economic order quantity? units (round your response to two decimal places).
Annual demand (D) is 49,000 units. Ordering Cost (S) is $1,000 per order. Holding cost (H) is $2 per unit per year. Find economic order quantity (Q*). 7,000 units 49,000,000 units 4,950 units 3,500 units 4,083 units
William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: a) The EOQ for the workbooks is (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $ (round your response to the nearest whole number). c) What are the annual ordering costs? $ (round your response to the nearest whole number). Demand D Ordering cost S Holding cost H 19,300 units/year $24/order $4/unit/year

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