Question: Hi there I need help with this questions I found question one and two but last question there is nothing about it. Inventory Problems -
Hi there
I need help with this questions I found question one and two but last question there is nothing about it.
Inventory Problems - OPM 400
- Dilbert Electronics sells 15,000 electro-pneumatic Agastat units per year. Supplier ordering cost is $75 per order and the holding cost is $25 per Agastat. The supplier requires two (2) days lead-time even though it operates 300 days per year.
- What is the economic order quantity? Marks = 1
- What is the annual holding cost? Marks = 1
- What is the annual ordering cost? Marks = 1
2. Dawgberts Dashpots and Relays sells 400 units per year of its Model DC-x. The holding cost is $5 per unit per year and the ordering cost is $40.
- How many units should be ordered each time to minimize the total cost? Marks = 1.5
- Calculate the optimum order quantity if the holding cost was $6 per unit? Marks = 1.5
3. Reeliebig Bearings Ltd. operates for 250 days per year. The quick demand on inventory requires 7,000 kanutten bearings per year, with a weekly demand of 140 units. The cost of each unit is $110. The cost for each order is $45 with a five (5) days lead-time required for the order to arrive on site. The carrying cost is $25 per year per unit.
- Calculate the economic order quantity. Marks = 1
- If the EOQ is used, what is the average inventory? Marks = 1
- Calculate the number of orders per year and the number of days between any two orders. Marks = 1
- Calculate the total annual inventory cost, includes the cost of 6,000 units. Marks = 1
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
