Question: For an economic order quantity (EOQ) model, the demand is 18,000 units per year and the optimal order quantity is 600 units. The cost to

For an economic order quantity (EOQ) model, the demand is 18,000 units per year and the optimal order quantity is 600 units. The cost to place an order is $100. The lead time is 2 days. How many orders will be placed annually? Select the closest answer.

		120 orders
		20 orders
		30 orders
		10 orders

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!

inventory forecast analytic QUESTION 9 For an economic order quantity (EOQ) model, the demand is 12,000 units per year and the optimal order quantity is 600 units. The cost to place an order is $100....

Required: Calculate the value of closing inventory, using the following valuation techniques: 2.2.1 Weighted average cost. (Round off to the nearest cent) 2.2.2 First-in, first-out. 2.2.3 Last-in,...

Harry's Hardware acts as a distributor for industrial fasteners. As the Inventory Manager for Harry's Hardware, you are responsible for inventory planning and management. You are provided with the...

1. Consider the below information with the simple Economic Order Quantity (EOQ) model: Annual Demand (D): 1,500 units Ordering Cost (S): $100 per order Holding Cost per item (H) : $5 per year (a)...

What I need is atucally just results/correct answers so I can compare with my own calculations. Thanks in advance! Exercise 3 (20 percent) Retailers are currently placing their orders for a new...

For an economic order quantity (EOQ) model, the demand is 12,000 units per year and the optimal order quantity is 600 units. The cost to place an order is $100. The lead time is 2 days. How many...

Consider the below information with the simple Economic Order Quantity ( EOQ ) model: Annual Demand ( D ) : 1 , 5 0 0 units Ordering Cost ( S ) : $ 1 0 0 per order Holding Cost per item ( H ) : $ 5...

What does the point of intersection between the ordering cost curve and the carrying cost curve represent in the Economic Order Quantity ( EOQ ) model? What does the point of intersection between the...

A company uses Economic Order Quantity ( EOQ ) model for inventory management. The annual demand for a product is 1 2 , 0 0 0 units, the ordering cost per order is $ 1 0 0 , and the holding cost per...

Bhawan Trading Company buys and uses a component for production at RO 100 per unit. Per week requirement is 45 units. The carrying cost of inventory is 35% per annum and ordering cost is RO 50 per...

The annual output of a company is described by the following indices: If the company made 23,850 units in year 2, how many did it make in the other years? What is the percentage increase in output...

The City of Bingham administers a tax custodial fund that bills and collects property taxes levied by the governing bodies of the Bingham School District (BSD) and the Sunrise County Library (SCL),...

When Faith Fitzgerald, MD wrote about "the dark side of being thin," she was attacking the prevalent assumption that:Multiple Choice 5 points

Discuss the conditions required to produce large crystallite of chromium hydroxide by precipitation.