An auto parts store sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand...

 

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An auto parts store sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery's value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. The store opens for 240 days per year a. Determine the ordering, holding, and total inventory costs for the current order quantity. (0.5 diem) b. Determine the economic order quantity (EOQ), (0.5 diem) c. Determine the total inventory costs for the EOQ. How has total inventory cost changed? (0.5 diem) d. A new supplier is offering each battery at $27 in lots of 240. Who should the store owner buy from ? (1.0 điểm The battery manufacturer makes it own battery at a rate of 50 pairs per day and setup cost for a production run is $45. Determine the: e. The optimal run size? (0.5 diem) f. How much time will elapse between productions? (0.5 diem) g. How much is saved per year if they are self-produced battery (0.5 diem) An auto parts store sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery's value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. The store opens for 240 days per year a. Determine the ordering, holding, and total inventory costs for the current order quantity. (0.5 diem) b. Determine the economic order quantity (EOQ), (0.5 diem) c. Determine the total inventory costs for the EOQ. How has total inventory cost changed? (0.5 diem) d. A new supplier is offering each battery at $27 in lots of 240. Who should the store owner buy from ? (1.0 điểm The battery manufacturer makes it own battery at a rate of 50 pairs per day and setup cost for a production run is $45. Determine the: e. The optimal run size? (0.5 diem) f. How much time will elapse between productions? (0.5 diem) g. How much is saved per year if they are self-produced battery (0.5 diem)

Answer rating: 100% (QA)

a To determine the ordering holding and total inventory costs for the current order quantity we need to calculate the following Ordering cost OC OC Cost per order Annual demand Order quantity OC 20 12... View the full answer