Question: A local distributor expects to sell 9 , 6 0 0 units of an electrical device per year. These electrical devices are purchased from a

A local distributor expects to sell 9,600 units of an electrical device per year. These electrical devices are purchased from a supplier in a different state. The following information is known about the problem:
Annual demand, D 9,600 units
Holding cost per unit per year, H $16
Ordering cost per order, S $75
Number of working days per year 288
Write your final answer only (without intermediate steps) for the fill-in-the-blank questions.
Question 26(5 points)
Question 26 options:
The economic order quantity (EOQ)=
units. Round the final answer (if it is not an integer) to the nearest integer.
Question 27(5 points)
Question 27 options:
Based on the EOQ, the average inventory =
units. Round the final answer (if it is not an integer) to the nearest integer.
Question 28(5 points)
Question 28 options:
The optimal number of orders per year =
orders. Round the final answer (if it is not an integer) to the nearest integer.
Question 29(5 points)
Question 29 options:
Total annual inventory cost (excluding the purchase cost)= $
. Round the final answer (if it is not an integer) to the nearest integer.
Question 30(5 points)
Question 30 options:
If the management decides to order 9,600 units (instead of the EOQ quantity obtained above) per order, the total annual inventory cost (excluding the purchase cost)= $
. Round the final answer (if it is not an integer) to the nearest integer.

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!