Joe Henry's machine shop uses 2,490 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: a) What is the EOQ? Annual demand Holding cost per bracket per year Order cost per order Lead time Working days per year units (round your response to two decimal places). 2,490 $1.50 $19.75 2 days 250 a) What is the EOQ? units (round your response to two decimal places). b)What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? $ c)Given the EOQ, how many orders will be made annually? What would be the annual order cost? $ (round your response to two decimal places). d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ (round your response to two decimal places). e)What is the time between orders? days (round your response to two decimal places). f) What is the reorder point (ROP)? units (round your response to two decimal places). units (round your response to two decimal places). (round your response to two decimal places). orders (round your response to two decimal places).
Joe Henry's machine shop uses 2,490 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: a) What is the EOQ? Annual demand Holding cost per bracket per year Order cost per order Lead time Working days per year units (round your response to two decimal places). 2,490 $1.50 $19.75 2 days 250 a) What is the EOQ? units (round your response to two decimal places). b)What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? $ c)Given the EOQ, how many orders will be made annually? What would be the annual order cost? $ (round your response to two decimal places). d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ (round your response to two decimal places). e)What is the time between orders? days (round your response to two decimal places). f) What is the reorder point (ROP)? units (round your response to two decimal places). units (round your response to two decimal places). (round your response to two decimal places). orders (round your response to two decimal places).
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 2CE: Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An...
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answer parts a b and c
Transcribed Image Text:Joe Henry's machine shop uses 2,490 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:
a) What s the EOQ?
Annual demand
Holding cost per bracket per year
Order cost per order
Lead time.
Working days per year
units (round your response to two decimal places).
e)What is the time between orders?
f) What is the reorder point (ROP)?
2,490
$1.50
$19.75
2 days
250
a) What is the EOQ?
units (round your response to two decimal places).
b)What is the average inventory if the EOQ is used?
What would be the annual inventory holding cost? $
c)Given the EOQ, how many orders will be made annually?
What would be the annual order cost? $ (round your response to two decimal places).
d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ (round your response to two decimal places).
days (round your response to two decimal places).
units (round your response to two decimal places).
units (round your response to two decimal places).
(round your response to two decimal places).
orders (round your response to two decimal places).
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