Question
Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following
Joe Henry's machine shop uses
2,500
brackets during the course of a year. These brackets are purchased from a supplier
90
miles away. The following information is known about the brackets:
Annual demand | 2,500 |
Holding cost per bracket per year | $1.35 |
Order cost per order | $18.50 |
Lead time | 2 days |
Working days per year | 250 |
Part 2
a) | What is the EOQ?
units (round your response to two decimal places). |
Part 3
b) | What is the average inventory if the EOQ is used?
units (round your response to two decimal places). |
What would be the annual inventory holding cost? $ (round your response to two decimal places). |
Part 4
c) | Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places). |
What would be the annual order cost? $enter your response here (round your response to two decimal places). |
d.) Given the EOQ, what is the total annual cost of managing the inventory?
e.) What is the time between orders?
f.) What is the reorder point (ROP)
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