Joe Henry's machine shop uses 2,530 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 2,530 Holding cost per bracket per year $1.65 Order cost per order $18.25 Lead time 2 days Working days per year 250 Part 2 a) What is the EOQ? enter your response here units (round your response to two decimal places). Part 3 b) What is the average inventory if the EOQ is used? enter your response here units (round your response to two decimal places). What would be the annual inventory holding cost? $enter your response here (round your response to two decimal places). Part 4 c) Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places). What would be the annual order cost? $enter your response here (round your response to two decimal places). Part 5 d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $enter your response here (round your response to two decimal places). Part 6 e) What is the time between orders? enter your response here days (round your response to two decimal places). Part 7 f) What is the reorder point (ROP)? enter your response here units (round your response to two decimal places).
Joe Henry's machine shop uses 2,530 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 2,530 Holding cost per bracket per year $1.65 Order cost per order $18.25 Lead time 2 days Working days per year 250 Part 2 a) What is the EOQ? enter your response here units (round your response to two decimal places). Part 3 b) What is the average inventory if the EOQ is used? enter your response here units (round your response to two decimal places). What would be the annual inventory holding cost? $enter your response here (round your response to two decimal places). Part 4 c) Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places). What would be the annual order cost? $enter your response here (round your response to two decimal places). Part 5 d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $enter your response here (round your response to two decimal places). Part 6 e) What is the time between orders? enter your response here days (round your response to two decimal places). Part 7 f) What is the reorder point (ROP)? enter your response here units (round your response to two decimal places).
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
Related questions
Question
Joe Henry's machine shop uses
2,530
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
|
2,530
|
|
Holding cost per bracket per year
|
$1.65
|
|
Order cost per order
|
$18.25
|
|
Lead time
|
2 days
|
|
Working days per year
|
250
|
Part 2
|
a)
|
What is the EOQ?
enter your response here
units (round your response to two decimal places). |
Part 3
|
b)
|
What is the average inventory if the EOQ is used?
enter your response here
units (round your response to two decimal places). |
|
|
What would be the annual inventory holding cost?
$enter your response here
(round your response to two decimal places). |
Part 4
|
c)
|
Given the EOQ, how many orders will be made annually?
enter your response here
orders (round your response to two decimal places). |
|
|
What would be the annual order cost?
$enter your response here
(round your response to two decimal places). |
Part 5
|
d)
|
Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory?
$enter your response here
(round your response to two decimal places). |
Part 6
|
e)
|
What is the time between orders?
enter your response here
days (round your response to two decimal places). |
Part 7
|
f)
|
What is the reorder point (ROP)?
enter your response here
units (round your response to two decimal places). |
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