Annual inventory holding cost

Reference no: EM13124953

Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost) and the ordering cost per order is $18.75.

There are 250 working days per year.

(a) What is the EOQ?

(b) Given the EOQ, what is the average inventory? What is the annual inventory holding cost?

(d) Given the EOQ, what is the total annual inventory cost (including purchase cost)?

(e) What is the time between orders?

(f) What is the ROP?

Reference no: EM13124953

Questions Cloud

Calculate the kinetic energy of the metal : The wavelength corresponding to the threshold frequency to tungsten surface is 230nm. Calculate the kinetic energy of the photoelectron ejected from the surface of tungsten metal.

Chemical equation is a kinetically paced reaction : Determine if the following chemical equation is a kinetically paced reaction: 4NO + 4NH3 + O2 = N2 + 6H2O In other words, is there a kinetic rate equation that can be presented simply that defines the pace of the above reaction

Why is the materiality of a transaction : Does the concept of materiality mean that financial statements are not precise, down to the last dollar? Does this concept make financial statements less use full to most users?

Identify all verb forms and the phrase/clause structures : In the following passages, identify all verb forms and the phrase/clause structures in which they are embedded.

Annual inventory holding cost : Given the EOQ, what is the average inventory? What is the annual inventory holding cost?

Aggression theory : What specific areas should be covered when preparing an essay on aggression theory?

Calculate the molarity of the ethanol solution : An aqueous solution of ethanol, C2H5OH, is 19.00% ethanol by mass and has a density of 0.9700 g mL-1. Calculate the molarity of the ethanol solution.

What are some of the limitations of the equity method : Compare and contrast the Fair-Value Method (FAS 115) covered in your Intermediate Accounting courses (touched on in our textbook) and Equity Method. When should you use each method and why? What are some of the limitations of the Equity Method? (T..

Determine the solubility of n2 in water : Determine the solubility of N2 in water exposed to air at 25 C if the atmospheric pressure is 1.2 atm. Assume that the mole fraction of nitrogen is 0.78 in air and the Henry's law constant for nitrogen in water at this temperature is 6.1 10-4 M/at..

User Account

All Pages