Question: Problem 12 Sam Houstons maintenance facility uses 9,600 tires during the course of a year. The tires are purchased from a supplier 80 miles away.

Problem 12

Sam Houstons maintenance facility uses 9,600 tires during the course of a year. The tires are purchased from a supplier 80 miles away. Their operation makes tires 288 days out of a year. The following information is known about the tires:

Annual demand:	9,600
Holding cost per bracket per year:	$16
Order cost per order:	$75
Lead time:	2 days
Working days per year	288

Given the above information, what would be the economic order quantity (EOQ)?

What is the number of orders per year?

What is the average inventory?

What is the annual holding costs?

What is the annual ordering costs?

Given the EOQ, what is the total annual cost of managing the inventory?

What is the time between orders?

What is the reorder point (ROP)?

Show all your formulas used for calculations. If you use Excel, you do not have to retype the formulas.

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!

Select a publicly traded company for analysis or use a company assigned by your instructor. Using the firms most recent Form 10-K report (accessed through the SEC EDGAR database or from the companys...

Problem 12 Sam Houston's maintenance facility uses 9,600 tires during the course of a year. The tires are purchased from a supplier 80 miles away. Their operation makes tires 288 days out of a year....

Problem 1 2 Sam Houston's maintenance facility uses 9 , 6 0 0 tires during the course of a year. The tires are purchased from a supplier 8 0 miles away. Their operation makes tires 2 8 8 days out of...

Sam Houstons maintenance facility uses 9,600 tires during the course of a year. The tires are purchased from a supplier 80 miles away. Their operation makes tires 288 days out of a year. The...

Sam Houston's maintenance facility uses 9,600 tires during the course of a year. The tires are purchased from a supplier 80 miles away. Their operation makes tires 288 days out of a year. The...

Sam Houston's maintenance facility uses 9 , 6 0 0 tires during the course of a year. The tires are purchased from a supplier 8 0 miles away. Their operation makes tires 2 8 8 days out of a year. The...

s Sam Houston's maintenance facility uses 9,600 tires during the course of a year. The tires are purchased from a supplier 80 miles away. Their operation makes tires 288 days out of a year. The...

Rock Business maintenance facility uses 9,600 tires during the course of a year. The tires are purchased from a supplier 80 miles away. Their operation makes tires 288 days out of a year. The...

In addition to asking about educational attainment the survey conducted in Exercise 12.137 also asked whether the respondent had plans in the next 2 years to take a course (1 = No, 2 = Yes). Can we...

A ball is thrown vertically downward with a velocity of 20 m/s from the top of a tower. It hits the ground after some time with a velocity of 80 m/s. The height of the tower is: (g = 10 m/s) (1) 300...

P21.4 (LO 2) Groupwork Ethics (Accounting Changes) Aston plc performs year-end planning in November of each year before its calendar year ends in December. The preliminary estimated net income is 3...

What is an example of constructive feedback? provide reference