Question: Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 6,500 units; carrying
Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 6,500 units; carrying cost is $25 per unit per year; order costs for his company typically run nearly $25 per order; and lead time averages 15 days. (Assume 250 working days per year.)
Part 2 a) The economic order quantity is 1300013000 units (round your response to the nearest whole number).
Part 3 b) The average inventory is enter your response here units (round your response to the nearest whole number). Part 4 c) The optimal number of orders per year is enter your response here orders (round your response to the nearest whole number). Part 5 d) The optimal number of working days between orders is enter your response here days (round your response to two decimal places). Part 6 e) The total annual inventory cost (carrying cost+ordering cost) is $enter your response here (round your response to the nearest cent). Part 7 f) The reorder point is enter your response here units (round your response to the nearest whole number).
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