Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest - moving inventory

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5,800 units per year. The cost of each unit is $96, and the inventory carrying cost is $8 per unit per year. The average ordering cost is $31 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 116 units.(This is a corporate operation, and there are 250 working days per year).
Part 2
a) What is the EOQ? enter your response here units (round your response to two decimal places).

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

Perioperative Pain Management For General And Plastic Surgery

Authors: Deepak Narayan, Alan D Kaye, Nalini Vadivelu

1st Edition

0190457007, 978-0190457006

More Books

Students also viewed these General Management questions