Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 5,000 units; carrying cost is $50 per unit per year; order costs for his company typically run nearly $30 per order; and lead time averages 10 days. (Assume 250 working days per year.) a) The economic order quantity is units (round your response to the nearest whole number). b) The average inventory is units (round your response to the nearest whole number). c) The optimal number of orders per year is orders (round your response to the nearest whole number). d) The optimal number of working days between orders is days (round your response to two decimal places). e) The total annual inventory cost (carrying cost + ordering cost) is $ (round your response to two decimal places). f) The reorder point is units (enter your response as a whole number).

Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 5,000 units; carrying cost is $50 per unit per year; order costs for his company typically run nearly $30 per order; and lead time averages 10 days. (Assume 250 working days per year.) a) The economic order quantity is units (round your response to the nearest whole number). b) The average inventory is units (round your response to the nearest whole number). c) The optimal number of orders per year is orders (round your response to the nearest whole number). d) The optimal number of working days between orders is days (round your response to two decimal places). e) The total annual inventory cost (carrying cost + ordering cost) is $ (round your response to two decimal places). f) The reorder point is units (enter your response as a whole number).

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...

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