Question: please please answer this question i am begging u A warehouse that serves its own grocery stores orders its laundry soap from a supplier. The
please please answer this question i am begging u
A warehouse that serves its own grocery stores orders its laundry soap from a supplier. The lead time of replenishment is 2 weeks. The cost of placing an order is $120, the cost of each bottle of laundry soap to the warehouse is $5 a bottle. The annual physical carrying cost is 8% of the cost of soap and the annual cost of capital is 7% of the cost of soap. The average demand is 6,000 bottles a week. The warehouse operates 50 weeks a year. The warehouse currently orders 15,000 bottles of laundry soap each time an order is placed.
What is the total annual inventory holding cost for laundry soap with the current order quantity?
A.
$900,000
B.
$1,500,000
C.
$2,400
D.
$5,625
What is the economic order quantity (EOQ; Q*) of laundry soap?
A.
1,386 bottles
B.
1,920,000 bottles
C.
15,000 bottles
D.
9,798 bottles
If the warehouse orders economic order quantity, what is the average cycle inventory?
A.
692.8 bottles
B.
4,899 bottles
C.
7500 bottles
D.
960,000 bottles
If the warehouse orders economic order quantity, how many times per year will they place an order?
A.
0.16
B.
216.5
C.
30.62
D.
20
What is the reorder point (ROP) of laundry soap?
A.
600,000
B.
240
C.
12,000
D.
30,000
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