Question: Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 6,000 units; carrying
Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 6,000 units; carrying cost is $45 per unit per year; order costs for his company typically run nearly $45 per order; and lead time averages 12 days. (Assume 250 working days per year.)
a) The economic order quantity is
b) The average inventory is ? units (round your response to the nearest whole number).
c) The optimal number of orders per year is ? orders (round your response to the nearest whole number).
d) The optimal number of working days between orders is ? days (round your response to two decimal places).
e) The total annual inventory cost (carrying cost+ordering cost) is $ ? (round your response to the nearest cent).
f) The reorder point is ? units (round your response to the nearest whole number).
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