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HH Gregg is a new specialty store that sells home appliances and consumer electrics. A new 3D HD television, manufactured by Samsung, costs HH Gregg $600 per unit. HH Gregg’s annual holding cost rate is 22%. Ordering costs are estimated to be $70 per order.

a. If demand for the 3D HD television is expected to be constant with a rate of 20 units per month, what is the recommended order quantity for the 3D HD television?

b. What are the estimated annual inventory holding and ordering costs associated with this product?

c. How many orders will be placed per year?

d. With 250 working days per year, what is the cycle time for this product?

Please show all work.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92600237

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