Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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: Holding cost per bracket per year: 10% Order cost per order: $18.75 Lead time: 2 days Working days per year: 250 Unit cost $15 a. Given the above information, what would be the economic order quantity (EOQ)? [Select] b. Given the EOQ, what would be the average inventory? [Select] would be the annual inventory holding cost? $ [Select] c. Given the EOQ, how many orders would be made each year? [Select] d. Given the EOQ, what is the total annual cost of managing the inventory? $ [Select] e. What is the time between orders? [Select] f. What is the reorder point (ROP)? [Select] days What
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started