Question 4 An electronics shop sells 6000 headphones in a year and the sales is relatively constant throughout the year. These headphones are purchased for SR 20.00 each, and the lead time is three days. The holding cost per headphone per year is 10% of the unit cost and the ordering cost per order is SR 75. There are 300 working days per year. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? (iv) What is the time between orders? (v) What is the ROP?

Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
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Question 4
An electronics shop sells 6000 headphones in a year and the sales is relatively constant
throughout the year. These headphones are purchased for SR 20.00 each, and the lead
time is three days. The holding cost per headphone per year is 10% of the unit cost and
the ordering cost per order is SR 75. There are 300 working days per year. Calculate the
following:
(i) What is the annual holding cost?
(ii) In minimizing the cost, how many orders would be made each year?
(iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)?
(iv) What is the time between orders?
(v) What is the ROP?

Question 4
An electronics shop sells 6000 headphones in a year and the sales is relatively constant
throughout the year. These headphones are purchased for SR 20.00 each, and the lead
time is three days. The holding cost per headphone per year is 10% of the unit cost and
the ordering cost per order is SR 75. There are 300 working days per year. Calculate the
following:
(i) What is the annual holding cost?
(ii) In minimizing the cost, how many orders would be made each year?
(iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)?
(iv) What is the time between orders?
(v) What is the ROP?
Transcribed Image Text:Question 4 An electronics shop sells 6000 headphones in a year and the sales is relatively constant throughout the year. These headphones are purchased for SR 20.00 each, and the lead time is three days. The holding cost per headphone per year is 10% of the unit cost and the ordering cost per order is SR 75. There are 300 working days per year. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? (iv) What is the time between orders? (v) What is the ROP?
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