Question: Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 3 , 0

Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 3,000units; carrying cost is $45 per unit per year; order costs for his company typically run nearly $20 per order; and lead time averages 6 days.(Assume 250 working days per year.)
Part 2
a) The economic order quantity is 5252 units(round your response to the nearest whole number).
Part 3
b) The average inventory is 2626 units(round your response to the nearest whole number).
Part 4
c) The optimal number of orders per year is 5858 orders(round your response to the nearest whole number).
Part 5
d) The optimal number of working days between orders is 4.314.31 days (round your response to two decimal places).
Part 6
e) The total annual inventory cost(carrying cost+ordering cost) is $2,323.852,323.85(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).

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!