Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with...
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Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5,750 units per year. The cost of each unit is $101, and the inventory carrying cost is $8 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 115 units. (This is a corporate operation, and there are 250 working days per year). a) What is the EOQ? units (round your response to two decimal places). b) What is the average inventory if the EOQ is used? units (round your response to two decimal places). c) What is the optimal number of orders per year? orders (round your response to two decimal places). days (round your response to two d) What is the optimal number of days in between any two orders? decimal places). e) What is the annual cost of ordering and holding inventory? $ per year (round your response to two decimal places). f) What is the total annual inventory cost, including the cost of the 5,750 units? $ two decimal places). per year (round your response to Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5,750 units per year. The cost of each unit is $101, and the inventory carrying cost is $8 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 115 units. (This is a corporate operation, and there are 250 working days per year). a) What is the EOQ? units (round your response to two decimal places). b) What is the average inventory if the EOQ is used? units (round your response to two decimal places). c) What is the optimal number of orders per year? orders (round your response to two decimal places). days (round your response to two d) What is the optimal number of days in between any two orders? decimal places). e) What is the annual cost of ordering and holding inventory? $ per year (round your response to two decimal places). f) What is the total annual inventory cost, including the cost of the 5,750 units? $ two decimal places). per year (round your response to
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Related Book For
Andersons Business Law and the Legal Environment
ISBN: 978-1133587583
22nd edition
Authors: David P. Twomey, Marianne M. Jennings
Posted Date:
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