Question
One of the Las Vegas Corporation's primary suppliers provides an essential component. The operations manager needs to know the economic order amount and when to
One of the Las Vegas Corporation's primary suppliers provides an essential component. The operations manager needs to know the economic order amount and when to reorder in order to keep the yearly inventory cost to a minimum. The information derived from previous data was stored in Microsoft Excel Online. Answer the questions below by conducting the necessary analysis. Avoid rounding intermediate computations. Round your answers in accordance with the input instructions for each question, but use the unrounded numbers in subsequent computations.
EOQ Calculation Annual requirement in units (R) 6,800 Setup cost (S) $120 Holding rate (k) 15% Unit Cost (C) $17 Order lead time (LT, days) 7 Number of days per year 360 Formulas EOQ #N/A Annual purchase cost Annual holding cost Annual order cost Total inventory cost Reorder point (ROP, days) Number of orders per year #N/A #N/A #N/A #N/A #N/A #N/A Time between orders (days) #N/A
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