Question
Use this information to answer the following questions RobCo is a distributor of Protectron Security Robots. The annual demand for their Protrectrons is 10,880 units.
Use this information to answer the following questions
RobCo is a distributor of Protectron Security Robots. The annual demand for their Protrectrons is 10,880 units. These robots cost $6,200 each. The annual carrying cost for their warehouse is 29% and for their in-transit shipping it is 16%. Their ordering costs are $200 per order. They operate 320 days per year. The in-transit shipping time for this item is 7 days (this is also your Lead Time).
- How many units are in the average in-transit inventory?
- What is the EOQ for this product?
- What is the annual in-transit carrying cost?
- What is the Total Annual Cost?
- What is the ROP for this product?
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Operations Management For Competitive Advantage
Authors: Richard B. Chase, F. Robert Jacobs
11th Edition
72983906, 71115528, 9780071115520, 978-0072983913
