Calculate economic order quantity-average inventory level

Assignment Help Operation Management
Reference no: EM131118401

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each. Annual demand is 5,000 heat sinks, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $56. Bill Maze, recently hired by Custom Computers, Inc., has suggested using the economic order quantity for the heat sinks. Calculate economic order quantity. units (Round your answer to 2 decimal places, the tolerance is +/-0.01.) LINK TO TEXT Calculate average inventory level. units (Round your answer to 2 decimal places, the tolerance is +/-0.02. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate number of orders placed per year. (Round your answer to 2 decimal places, the tolerance is +/-0.01. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate total annual ordering cost. $ (Round your answer to 2 decimal places. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate total annual holding cost. $ (Round your answer to 2 decimal places. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate total annual cost. $ (Round your answer to 2 decimal places.)

Reference no: EM131118401

Questions Cloud

What is the most economical order quantity : A firm machinery manufacture requires 7,000 air filters per year as replacement parts on mechanical harvesters. The filters cost $3 each and are stored in rented facilities at a cost of $.35 per unit-year, with storage requirements based upon the max..
Must the contract be in writing to be enforceable : ABC company hired Andrew as its research director. The terms of the employment contract is five years. As ABC knows at the moment of signing, Andrew is terminally ill when the contract is created, and is not expected to live more than nine months. Mu..
Virtual financial project : You are the project manager of a large, virtual financial project. You want to improve the functioning of the project team. Which of the techniques below would not likely improve the effectiveness and efficiency of the project team?
Calculate total annual costs using the EOQ ordering policy : Sam’s Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The shop operates fifty-two weeks per year and weekly demand is 156 filters. Calculate the total annual costs associated with Sam..
Calculate economic order quantity-average inventory level : Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each. Annual demand is 5,000 heat sinks, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be ..
Calculate average inventory level : Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,300 units. Annual demand is 5,100 heat sinks, the annual inventory holding cost rate is $4 per unit, and t..
Calculate the total annual holding costs : Frederick’s Farm Factory (FFF) currently marintains an average inventory valued at $3,400,000. The company estimates its capital cost at 10 percent, its storage cost at 4.5 percent, and its risk cost at 6 percent. Calculate the annual holding cost ra..
What are some of benefits and concepts of project management : With regards to supply chain management in a healthcare setting, discuss some of the benefits of forecasting. What are some of the benefits and concepts of project management? How is project management beneficial? Discuss. Give an example of project ..
Calculate the expected inventory turnover : Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at GR was $3,000,000. Genuine Reproductions (GR) plans on increasin..

Reviews

Write a Review

Operation Management Questions & Answers

  A recent trend among mnes is to replace expatriates

A recent trend among MNEs is to replace expatriates in foreign subsidiaries with local managers. What are the implications of that policy from the standpoints of

  How this might affect completing projects within budget

Discuss why many information technology professionals may overlook project cost management and how this might affect completing projects within budget.

  Available-for-sale securities that have experienced losses

Some managers seem to hold their available-for-sale securities that have experienced losses, while selling those that have gains, thus increasing income. Do you think this is ethical?

  Project performance and status report

Prepare a report in Word. This report should include a project history of your recent Trillo Apparel Company District 4 Production Warehouse Move experience over the last five weeks.

  Some businesses offering exceptional convenience may be

When using "brainstorming" to generate creative service ideas, leaders should: Some businesses offering exceptional convenience may be: Some businesses offering exceptional convenience may be:

  Is the defendant restaurant liable for negligence

The plaintiff, while a parton in a restaurant, was shot by an armed robber. The robber was angry because the cashier had locked the cash register and fled. Is the defendant restaurant liable for negligence? why?

  Differential psychology focus on identifying

What five physical areas between people does differential psychology focus on identifying? Is it important for managers to understand their employees' differences? Why or why not? Explain your viewpoint by giving a minimum of two specific examples..

  How different perceptual categories among key stakeholders

Describe the sources of these restraints and how they may have impacted on the failure of the mission to prevent the genocide.

  How the pay levels are determined

When you look at the pay of unionized employees vs nonunion in similar job classifications, what are the differences in terms of amount of pay, how the pay levels are determined, how pay increases are given, and the role of the employee in determi..

  How structural disadvantage also inequality being addressed

Using your own experience also or resources, do you agree? Provide examples also supporting evidence from multiple sources to support your position.

  Describe the most suitable form of ownership for your new

select a small business that you visit often e.g. coffee shop bookstore sporting goods store etc.. write a 6-8 page

  Create a process map

Create a Process Map- Assume you drank a cup of coffee or tea this morning. Did you make it yourself or did you buy it? Draw a detailed process map illustrating the activity involved in making/obtaining your beverage

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd