Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 6,000 units per year. The cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. The average ordering cost is $30 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (This is a corporate operation, and there are 250 working days per year.)

a) What is the EOQ?

b) What is the average inventory if the EOQ is used?

c) What is the optimal number of orders per year?

d) What is the optimal number of days in between any two orders?

e) What is the annual cost of ordering and holding inventory?

f) What is the total annual inventory cost, including cost of the 6,000 units?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M998635

Have any Question? 


Related Questions in Business Management

One of the main jobs of a web developerprogrammer is to

One of the main jobs of a web developer/programmer is to ensure that websites are successfully optimized for the web.  Chapter 15 presents many strategies one can use (e.g. reducing your image resolution). Using the reso ...

A jacks refrigeration repair is under contract to repair

(a) Jack's Refrigeration Repair is under contract to repair, recondition, and/or refurbish commercial and industrial ice makers for restaurants, seafood processors and similar organisations. Jack currently has five jobs ...

Compare and contrast the mission andor organizational

Compare and contrast the mission and/or organizational visions statements of the two companies. What are the similarities and differences? How do you think these statements impact the culture of each organization? What s ...

Being a leader with leaders spirit compassion values and

Being a leader with leader's spirit, compassion, values, and skills will make the change situation more effective (Sidra, Zuhair, Noman & Sajid, 2012).What is a leader's spirit? What are your thoughts? How do you develop ...

This assignment will assess the following learning

This assignment will assess the following learning outcomes: 1) Identify and critically evaluate the major environmental influences affecting global and international markets to justify recommended strategies; 2) Apply a ...

What is the philosophy of care in assisted living how does

What is the philosophy of care in assisted living? How does this differ from other housing options, such as independent living and continuing care retirement communities?

Pricing products andor servicesthis week you are reviewing

Pricing Products and/or Services This week you are reviewing setting pricing based on break-even analysis, pricing strategies, and credit policies as they affect your small business and the people with whom you do busine ...

Assignmentscenario analysiswrite a 3-4 page analysis where

Assignment Scenario Analysis Write a 3-4 page analysis where you (1) Choose one of the simple scenarios listed below (a-d) or create your own scenario. (2) Identify the key problems or issues. (3) Identify and apply one ...

Sam certo a nanaimo vet is running a rabies vaccination

Sam Certo, a Nanaimo vet, is running a rabies vaccination clinic for dogs at the local grade school. Sam can "shoot" a dog every 3 minutes. It is estimated that the dogs will arrive independently and randomly throughout ...

1 operations management applications please respond to the

1. "Operations Management Applications" Please respond to the following: Evaluate different operations management principles and techniques that can make businesses more profitable today. Select one service company of yo ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro