managment quiz notes

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Riverside City College *

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37084

Subject

Economics

Date

Apr 3, 2024

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docx

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4

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(Round your responses to two decimal places in this question if needed) 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 $1.60 Order cost per order $20.00 Lead time 0 days Working days per year 250 What is the EOQ? -250.00 What is the average inventory if the EOQ is used? -$125.00 What would be the annual inventory holding cost? $200.00 Given the EOQ, how many orders will be made annually? - 10 E) What would be the annual order cost? - $200.00
F) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? - $400.00 G) What is the time between orders? - 25 days (Round your responses to two decimal places in this question if needed) George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 per unit. Each order placed costs George $150. He operates 300 days per year and has found that an order must be placed with his supplier 6 working days before he can expect to receive that order. For this subassembly, find: Economic order quantity. - 100 units B) Annual holding cost. - 2250.00 C) Annual ordering cost. - 2250.00 D) Reorder point. 30 units (Round your responses to two decimal places in this question if needed) Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 9,000 flashing lights per year and has the capacity of producing 60 per day. Setting up the light production costs $49. The holding cost is $0.10 per light per year. A) What is the optimal size of the production run? - 4200 B) What is the annual holding cost? - 105 C) What is the annual setup cost?
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