Question: Please answer all questions and round them correctly according to each question. Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys

Please answer all questions and round them correctly according to each question.

Please answer all questions and round them

Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $35 per unit. They send orders electronically to the manufacturer, costing $65 per order and they experience an average lead time of six days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is three units per day. They are open for business 250 days a year. Answer the following questions: a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Number of units 375 b. How many orders will they place in a year? (Use your rounded answer from Part a. Round your answer to 2 decimal places.) Number of orders per year 2.00 c. What is the average inventory? (Use your rounded answer from Part a. Round your answer to 1 decimal place.) Average inventory 187.5 units d. What is the annual ordering cost? (Use your rounded answer from Part b. Round your answer to 2 decimal places.) Annual ordering cost $ 130.00 e. What is the annual inventory carrying cost? (Use your rounded answer from Part a. Round your answer to 2 decimal places.) Annual inventory carrying cost $ 412.50

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!