Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DirtCo sells and distributes quality dirt to dirt connoisseurs across the world. The monthly demand for your most popular variety, Cambridge Red, is very stable

DirtCo sells and distributes quality dirt to dirt connoisseurs across the world. The monthly demand for your most popular variety, Cambridge Red, is very stable at 12,000 pounds. You order this item from an outside vendor, Muck Inc. The cost of placing an order is $30 and the material costs you $10 per pound. The annual holding cost rate of is estimated at 15%

A. What is the order size for your orders of Cambridge Red? Round to the nearest integer value.

B. How many orders do you expect to place over a year?

C. What is the order cycle time. number of days between orders. assume 365 days in a year and write your final answer with two significant digits. For example if your answer is 1.597 write your final answer as 1.60

D. What is the annual total relevant cost for this inventory policy? Round to the nearest integer.

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

Strategic Management and Competitive Advantage Concepts and Cases

Authors: Jay B. Barney, William Hesterly

5th edition

133129306, 0133127400, 9780133129304, 978-0133127409

More Books

Students also viewed these General Management questions