Question: Rainbow Inc.. is experiencing some inventory control problems. The manager, Jim Brown, currently orders 6,000 units five times each year to handle annual demand of
Rainbow Inc.. is experiencing some inventory control problems. The manager, Jim Brown, currently orders 6,000 units five times each year to handle annual demand of 30.000 units. Each order costs $12 and each unit costs $2.00 to carry. Mr. Brown maintains a safety stock of 150 units. A) What is Rainbow current Total Annual Inventory cost (TC)? B) Calculate the economic ordering quantity (EOQ). C) What is Average Inventory under EOQ if Mr. Brown maintains a safety stock of 150 units? D) Calculate total annual inventory cost using EOQ for Q. Rainbow Inc.. is experiencing some inventory control problems. The manager, Jim Brown, currently orders 6,000 units five times each year to handle annual demand of 30.000 units. Each order costs $12 and each unit costs $2.00 to carry. Mr. Brown maintains a safety stock of 150 units. A) What is Rainbow current Total Annual Inventory cost (TC)? B) Calculate the economic ordering quantity (EOQ). C) What is Average Inventory under EOQ if Mr. Brown maintains a safety stock of 150 units? D) Calculate total annual inventory cost using EOQ for
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