Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Christina motor Company uses 9000 (Yearly Demand) air filters during the span of a year, and this usage is relatively constant throughout the year.

image text in transcribed

Christina motor Company uses 9000 (Yearly Demand) air filters during the span of a year, and this usage is relatively constant throughout the year. These air filters are bought from a supplier 150 miles away for $75 each, and it takes 8 days from ordering to receipt. The carrying cost per unit per year is 17% of the unit cost and the ordering cost per order is $40. There are 225 working days per year. a. What is the Economic Order Quantity (round to the nearest whole number) b. What is the average inventory? c. About how many orders per year would be placed (round to the nearest whole number)? d. What is the total Annual inventory cost (Not just the total annual ordering and holding, but also including purchased cost of air filter)? e. What is the Lead-time? f. What is the Re-ordering point?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions Management A Risk Management Approach

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

8th edition

978-0078034800, 78034809, 978-0071051590

More Books

Students also viewed these Finance questions

Question

What is interest rate risk?

Answered: 1 week ago

Question

Define culture in the context of clinical psychology.

Answered: 1 week ago