Question: An inventory item has a constant demand which equates to annual demand of 7,200 units. It costs $4 to hold each unit in inventory annually

An inventory item has a constant demand which

An inventory item has a constant demand which equates to annual demand of 7,200 units. It costs $4 to hold each unit in inventory annually and it costs $16 to place an order. Using the basic EOQ model, what is the time between orders? The business operates 360 days per year. a. 10 days b. 16 days C. 20 days d. 12 days

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!

An inventory item has a constant demand which equates to annual demand of 7,200 units. It costs $4 to hold each unit in inventory annually and it costs $16 to place an order. Using the basic EOQ...

2. An inventory item has a constant demand rate of 5 units per day, order costs are $49.32 and annual holding costs are $2.00 per item. The optimal order quantity is 300 items. What are the annual...

Question 6 Not yet answered An inventory item has a constant demand rate of 5 units per day, order costs are $49.32, and annual holding costs are $2.00 per item. As a result, the optimal order...

Please help An inventory item has a constant demand rate of 5 unit per day, order Cast are $49.32, and annual holding cost $2.000 per ftom. As a result, the optimal order to Quantity is 300 items....

Reference: Input data for problems 1-4 follows: Cost data Regular time labor cost per hour $10 Overtime time labor cost per hour $15 Subcontracting cost per unit (labor only) $80 Back order cost per...

Q1) Q2 Q3 Q4 Q5 Q7 Q8 A manufacturing facility produces a certain product. The following data is provided: - Daily demand for the product: 500 units - Days the facility operates per month: 20 days -...

CLARINDA COMMUNITY HOSPITAL is a 230-bed, not-for-profit, acute care hospital located in Clarinda, Iowa. The city is a typical Midwestern county seat and farming community best known as the...

2/4 Assembly: there is no need for batching, and a car can be assembled in 20 minutes/unit capacity at Assembly = 1/20 units/min We leamed that the optimal batch size is the smallest batch size that...

Let X be a normally distributed random variable with mean 410 and standard deviation 2. Find the probability that X will be between 407 and 415.

Cioffi Manufacturing Company incorporates standards in its accounts and identifies variances at the time the manufacturing costs are incurred. Journalize the entries to record the following...

The following block of data was received after transmission from a remote computer; odd parity was being used by both sender and receiver. One of the bits has been changed during the transmission...

using excel, Please Estimate the following regressions, including a constant term: a) RCONS = f[RGDP, RGDP(t-1)] b) RCONS = f(RGDP, YEAR, T) c) RCONS = f(YEAR, T) d) RCONS = f(RGDP, WAR) e) RCONS =...