Joe Henrys machine shop uses 2,500 brackets during the course of a year. These brackets are purchased

Question:

Joe Henry’s machine shop uses 2,500 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:

image text in transcribed

a) Given the above information, what would be the economic order quantity (EOQ)?
b) Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost?
c) Given the EOQ, how many orders would be made each year? What would be the annual order cost?
d) Given the EOQ, what is the total annual cost of managing the inventory?
e) What is the time between orders? 

f) What is the reorder point (ROP)?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Operations Management Sustainability And Supply Chain Management

ISBN: 234357

12th Edition

Authors: CHUCK MUNSON & AMIT SACHAN AND . JAY HEIZER , BARRY RENDER

Question Posted: