A wholesale store buys 500 of their most popular coffee mugs each month. The cost of orderingand receiving shipments is $12 per order. Accounting estimates annual carrying costs are $3.60.The supplier lead time is 2 operating days. The store operates 240 days per year. Each order isreceived from the supplier in a single delivery. There are no quantity discounts.Use 2 decimal places in your calculations (if needed) and then round your final answer to theclosest whole number.a. What quantity should the store order with each order?(show your work in the space below)b. How many times per year will the store order?(show your work in the space below)c. How many days will elapse between two consecutive orders?(show your work in the space below)d. What is the reorder point if the company wishes to carry a safety stock of 10 mugs?(show your work in the space below)e. What is the store’s total annual cost of placing orders & carrying inventory?(show your work in the space below)
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
A wholesale store buys 500 of their most popular coffee mugs each month. The cost of ordering
and receiving shipments is $12 per order. Accounting estimates annual carrying costs are $3.60.
The supplier lead time is 2 operating days. The store operates 240 days per year. Each order is
received from the supplier in a single delivery. There are no quantity discounts.
Use 2 decimal places in your calculations (if needed) and then round your final answer to the
closest whole number.
a. What quantity should the store order with each order?
(show your work in the space below)
b. How many times per year will the store order?
(show your work in the space below)
c. How many days will elapse between two consecutive orders?
(show your work in the space below)
d. What is the reorder point if the company wishes to carry a safety stock of 10 mugs?
(show your work in the space below)
e. What is the store’s total annual cost of placing orders & carrying inventory?
(show your work in the space below)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 5 images
