Calculate the annual holding cost and annual order cost

Assignment Help Operation Management

Reference no: EM13901758

The weekly requirement of a part is 580 units. The order cost is $95 per order. The holding cost is $5 per unit per year, and the part cost is $950 per unit. The firm operates fifty-two weeks per year.

Calculate the following - Economic order quantity, annual holding cost, annual order cost and the annual inventory holding cost.

Suppose the firm is currently ordering once every four weeks (i.e., orders what is needed to meet the demand over next four weeks at a time). How much can the company save per year by using economic order quantity instead?

Reference no: EM13901758

Questions Cloud

Fica medicare taxes are gross pay : 1.Mester Company has 10 employees. FICA Social Security taxes are 6.2% of the first $110,100 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay.

Calculate the total manufacturing lead time for the order : An order for 200 of a product is processed on work centers A and B. The setup time on A is 30 minutes, and run time is 20 minutes per piece. The setup time on B is 50 minutes, and the run time is 10 minutes per piece. There is no waiting after operat..

Most discussed systems for improving productivity : Who created the basic framework for the world's most discussed systems for improving productivity, JIT, and lean manufacturing?

Would you expect to find more crabs : Would you expect to find more crabs during a full moon or during a quarter moon?

Calculate the annual holding cost and annual order cost : The weekly requirement of a part is 580 units. The order cost is $95 per order. The holding cost is $5 per unit per year, and the part cost is $950 per unit. The firm operates fifty-two weeks per year. Calculate the following - Economic order quantit..

Wedding reception : A catering company prepared and served 345 meals at an anniversary celebration last week using nine workers. The week before, five workers prepared and served 250 meals at a wedding reception.

What is the accounts payable clerks responsibility : Kathy Lentz, Rob Snyder, and Tom Rohm were all general partners in a consulting business. Each partner owned one-third of the business. The partnership agreement stated that all three partners must approve vouchers for payments in amounts exceeding $..

Stark company has five employees : Stark Company has five employees. Employees paid by the hour receive a $ 10 per hour pay rate for the regular 40 hour work week plus one and one half times the hourly rate for each overtime hour beyond the 40 hours per week.

Mobile phase and binding/elution strategy : A sample contains two proteins, Protein A (pI 5.9) and protein B (pI 7.8). Could you design an ion exchange chromatography method to separate these two proteins? (Please specify anion or cation exchange column, mobile phase, and binding/elution strat..

User Account

All Pages