Question: Can you please answer all five questions Use the below information for questions 1-5 A wholesale company is reviewing its inventory costs for a high

Can you please answer all five questions Use theCan you please answer all five questions Use theCan you please answer all five questions Use theCan you please answer all five questions

Use the below information for questions 1-5 A wholesale company is reviewing its inventory costs for a high volume item which has an annual demand of 72,000 units, with a per unit purchase price of $10. The ordering cost is estimated at $25, and the annual inventory carrying cost for the warehouse is computed at 30% of the price while the in-transit shipping factor is 13%. The in-transit shipping time is 14 days. Forecasted average demand is 200 units per day with a standard deviation of the forecast error of 20 units per day. The average order lead time is 16 days with a standard deviation of order lead time of 3 days. A 98% service level is to be maintained. There are 360 days in a year. What is the Annual Carrying Cost for this product (roughly)? $2,564.09 $8,552.33 O $10,674.32 O $1,642.50 What is the Annual Ordering Cost for this product (roughly)? O $1,643.83 O $$8,556.77 $10,677.54 $2,567.03 Question 3 4 pts What is the cost of holding safety stock for this product (roughly)? $1,280 $780.42 $1,643.70 $3,720 How much is the Annual In-Transit Carrying Cost for this product (roughly)? $2,452.73 O $101.68 $36,400 $3,640 Question 5 5 pts What is the Total Annual Cost for this product (roughly)? O $10,649.34 $7,006.33 $3,286.33 $9,332.45

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!