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All is one question Cullumber Aviation uses specialty gaskets in the production of a small aeroplane, X.224. During a year, Cullumber uses 19,600 gaskets with
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Cullumber Aviation uses specialty gaskets in the production of a small aeroplane, X.224. During a year, Cullumber uses 19,600 gaskets with an average usage of 35 gaskets per day of production. The gaskets cost $45 each. Because the gaskets require some special handling, the carrying costs are $5.00 per gasket. The ordering costs are $10 per order. Currently, Cullumber Aviation is placing orders for 1,120 gaskets. However, some of these gaskets are being damaged due to limited availability of the needed special storage. Elastomers, Inc. is the supplier of the specialty gaskets and can usually fill an order in 2 days. Occasionally, Elastomers is backlogged, but they never take more than 3 days to fill an order. If Cullumber runs out of gaskets, production will stop. (a) Calculate the total ordering cost and carrying cost for the current order size. (Round answers to 2 decimal places, eg. 125.74.) Ordering cost $ Carrying cost $ Total Cost $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Calculate the economic order quantity. Comment on whether this order quantity will help alleviate Cullumber Aviation's inventory storage concerns. Economic order quantity gaskets Economic order help alleviate Cullumber Aviation's invent storage concerns. e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (c) Calculate the appropriate re-order point. Discuss any potential problems with the timing of this re-order point. Re-order point gaskets e Textbook and Media Save for Later Attempts: 0 of 3 used SubmitStep by Step Solution
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