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A Carrefour supermarket in Ajman uses a supplier in Fujairah for a particular brand of bottled water. The annual demand for this product is 42,000 units (bottles of water). This Carrefour purchases bottled water from its supplier at a price of 0.8 Dirhams per bottlie. The inventory holding cost per bottle of water per year is 0.4 Dirhams. The ordering cost for this Carrefour is 80 Dirhams per order; and the lead-time is 2 days. The company operates 260 days a year. This Carrefour uses the basic EOQ model to manage its inventories. Note: Show all the steps and details of your calculations to get full mark. Note: For questions 2.A, 2.B, and 2.C only, please use 2 decimal points in your answers This is not the case for question 2.D, as discussed in class (for ROP). Q.2.B. What is the inventory cycle time (time between orders)?

A Carrefour supermarket in Ajman uses a supplier in Fujairah for a particular brand of bottled water. The annual demand for this product is 42,000 units (bottles of water). This Carrefour purchases bottled water from its supplier at a price of 0.8 Dirhams per bottlie. The inventory holding cost per bottle of water per year is 0.4 Dirhams. The ordering cost for this Carrefour is 80 Dirhams per order; and the lead-time is 2 days. The company operates 260 days a year. This Carrefour uses the basic EOQ model to manage its inventories. Note: Show all the steps and details of your calculations to get full mark. Note: For questions 2.A, 2.B, and 2.C only, please use 2 decimal points in your answers This is not the case for question 2.D, as discussed in class (for ROP). Q.2.B. What is the inventory cycle time (time between orders)?

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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A Carrefour supermarket in Ajman uses a supplier in Fujairah for a particular brand of bottled water. The annual demand for this product is 42,000 units (bottles of water). This Carrefour purchases bottled water from its supplier at a price of 0.8 Dirhams per bottle. The inventory holding cost per bottle of water per year is 0.4 Dirhams. The ordering cost for this Carrefour is 80 Dirhams per order; and the lead-time is 2 days. The company operates 260 days a year. This Carrefour uses the basic EOQ model to manage its inventories. Note: Show all the steps and details of your calculations to get full mark. Note: For questions 2.A, 2.B, and 2.C only, please use 2 decimal points in your answers This is not the case for question 2.D, as discussed in class (for ROP). Q.2.B. What is the inventory cycle time (time between orders)?
Transcribed Image Text:A Carrefour supermarket in Ajman uses a supplier in Fujairah for a particular brand of bottled water. The annual demand for this product is 42,000 units (bottles of water). This Carrefour purchases bottled water from its supplier at a price of 0.8 Dirhams per bottle. The inventory holding cost per bottle of water per year is 0.4 Dirhams. The ordering cost for this Carrefour is 80 Dirhams per order; and the lead-time is 2 days. The company operates 260 days a year. This Carrefour uses the basic EOQ model to manage its inventories. Note: Show all the steps and details of your calculations to get full mark. Note: For questions 2.A, 2.B, and 2.C only, please use 2 decimal points in your answers This is not the case for question 2.D, as discussed in class (for ROP). Q.2.B. What is the inventory cycle time (time between orders)?
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