Susan manages the packaging supplies for the New Zealand distributorship of AllBirds product lines. It's her...

 

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Susan manages the packaging supplies for the New Zealand distributorship of AllBirds product lines. It's her job to order all the shoe boxes that house each pair of shoes (whether going to retail stores, or shipping directly to consumers via the online store). She purchases shoe boxes from a local printing supplier. The NZ distributor ships on average 325 boxes of shoes each month. Boxes cost $2.25 each, and each order costs $18.00 to process. Because of limited storage space, Susan's manager wants to charge inventory holding at 25-percent of the unit cost. The lead time is 7 days. Assume 360 working days per year. Calculate the following: a. Economic Order Quantity (Marks: 2) b. Reorder Point (assuming no safety stock) (Marks: 1) c. Number of Orders-per-Year (Marks: 1) d. Total Annual Cost (Marks: 2) e. If storage space weren't so limited, Susan estimates that inventory holding costs would only be 15% of unit cost. How would that change total annual costs? (Marks: 4) Susan manages the packaging supplies for the New Zealand distributorship of AllBirds product lines. It's her job to order all the shoe boxes that house each pair of shoes (whether going to retail stores, or shipping directly to consumers via the online store). She purchases shoe boxes from a local printing supplier. The NZ distributor ships on average 325 boxes of shoes each month. Boxes cost $2.25 each, and each order costs $18.00 to process. Because of limited storage space, Susan's manager wants to charge inventory holding at 25-percent of the unit cost. The lead time is 7 days. Assume 360 working days per year. Calculate the following: a. Economic Order Quantity (Marks: 2) b. Reorder Point (assuming no safety stock) (Marks: 1) c. Number of Orders-per-Year (Marks: 1) d. Total Annual Cost (Marks: 2) e. If storage space weren't so limited, Susan estimates that inventory holding costs would only be 15% of unit cost. How would that change total annual costs? (Marks: 4)

Answer rating: 100% (QA)

Answer a Demand D 325 boxes per month 325 x 12 3900 boxes per year Set up cost S 18 Unit cost 225 Ho... View the full answer