Value electronics has a yearly demand of 100000 units for, Ask an Expert

Management Studies

Value Electronics has a yearly demand of 100,000 units for their tablet. The order processing cost per order is $2,000, and inventory holding cost is $100/item/year. They have opted for the reorder point system, and it has two options for transportation: by truck and by rail. Truck transportation takes 1 week, while rail transportation takes 2 weeks of lead time. Truck transportation costs $2 per tablet, while by rail the transportation cost is $1 per tablet. It is the policy of Value Electronics to hold enough inventories to cover demand for twice the lead time.

Calculate the annual cost of holding inventory for the truck scenario.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91909000

Have any Question?Write your Review or question?

Related Questions in Operation Management

Assignmentpart 1 -prepare a requirements management plan

Assignment Part 1 -Prepare a requirements management plan (RMP) that addresses the five components described in Section 5.1.3.2, PMBOK 6e. The plan should be at least 3 but not exceed 4 pages and does not need to conform ...

The priorities of organizations are important and

The priorities of organizations are important, and organizational theory defines the methods that organizations should use to determine and define their priorities and communicate them to stakeholders. Please briefly des ...

1 what type of competitive advantage does a best-cost

1. What type of competitive advantage does a best-cost provider strategy aim at achieving? Explain what a company has to do to achieve this advantage. Please go into detail. 2. Assume that you’re a prospective job seeker ...

Read the following case and answer the questions

Read the following case and answer the questions below. McDonald’s When a customer drives up to the speaker box at some McDonald’s drive-throughs, their order is placed with an employee located in a distant call center. ...

Develop your skills exercise this chapterrsquos develop

Develop Your Skills Exercise: This chapter’s Develop Your Skills feature describes how to create a career development plan. It is never too soon to identify your short- and long-term career goals and analyze what skills, ...

1 reverse logistics can have a positive impact on the

1. Reverse logistics can have a positive impact on the environment through activities such as? A. Risk pooling B. Recycling C. Data warehousing D. Reneging 2. Managing the reverse flow of products is harder than managing ...

1 explain what are the risks and rewards to a i buyer ii

1. Explain, what are the risks and rewards to a (i) Buyer (ii) Seller (iii) Lender and (iv) Real Estate Agent of a Buyer buying a REO property. Be detailed and site sources please, 2. What is the reason many senior immig ...

Answer the following questions 1you start your export

Answer the following Questions : 1. You start your export activity and you have no experience. Under which INCOTERM you would be interested in closing deals? why? 2. At the other extreme, you want to import and you do no ...

1 how do you feel about the ldquosettlementrdquo offer and

1. How do you feel about the “settlement” offer and the discount that Costa Concordia offered? 2. Why is strategic control important in the strategy implementation process? What are the four major types of strategic cont ...

Decide on a product or service for which you will develop a

Decide on a product or service for which you will develop a PSM. You may choose an existing product or service (ex AT&T U-verse) OR make up an interesting product or service to sell (ex the Booze Cruiser: We bring the pa ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert