Question: Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1300 units.

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1300 units. Annual demand is 5200 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $50. Calculate the following:

(a) Average inventory level.

(b) The number of orders placed per year.

(c) The total annual inventory holding cost.

(d) The total annual ordering cost.

(e) The total annual cost.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Operations Management 6th Questions!

1. (b) d. Custom Computers. Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,430 units. Annual demand is 5,720 heat sinks'...

1. part (b) letter (d) 30.56 is wrong Custom Computers. Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,430 units. Annual...

Custom Computers. Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,430 units. Annual demand is 5,720 heat sinks' the...

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,180 units. Annual demand is 4,720 heat sinks, the...

QUESTIONS Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture interested in measuring inventory effectiveness. Last year the cost of goods sold at GR was...

1. Elyssa's Elegant Eveningwear (EEE) needs to ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand for EEE is 2451 gowns. EEE can ship the gowns via...

QUESTION 1 Elyssas Elegant Eveningwear (EEE) needs to ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand for EEE is 2474 gowns. EEE can ship the gowns...

QUESTION 1 Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at GR...

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for 1 3 each and are ordered in quantities of 1 , 0 2 9 units. Annual demand is 7 , 2 8 4 heat sinks ,...

Replace the distributed loading shown with an equivalent Single force and state where the force acts on the beam measured from the left end. 16 kN/m 4 kN/m B A 2m * 2m - 2m 2m. 2m 1 kr/m

You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2016. The bonds have a par value of $1,000. Rate Maturity Mo/Yr Bid Asked...

Since there is a time value to money, the spot exchange rate of a currency is always lower than the forward exchange rate Question 7 4 options: TrueFalse

Most amusement parks in the United States charge a fixed price for admission, which includes unlimited roller coaster rides for the day. Some people attempt to ride the roller coasters as often as...