Question: 5 . A hardware store estimates the demand on number 6 screws as 7 , 0 0 0 screws per month. The cost of filling

5. A hardware store estimates the demand on number 6 screws as 7,000 screws per month. The cost of filling out the forms to place an order is $10. The annual holding cost rate of a screw is 5%. The cost per screw is 10 cents. The lead time is six days, and the store is open 288 days per year, assuming 24 days per month. Determine the following:
a) The economic order quantity. (5 Points)
A -
b) The reorder point assuming no safety stock. (5 Points)
A -
c) The number of orders per year. (5 Points)
A -
d) The time between orders. (5 Points)
A-
The total annual cost. (5 Points)
A -
f) Redo all the previous calculations in Excel and plot the cost curves and highlight the EOQ. (10 Points)

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 General Management Questions!