Calculate the annual inventory ordering costs

Assignment Help Operation Management

Reference no: EM13104801

A manufacturing operation must periodically purchase bulk quantities of machine screws. The operation expects to consume 18,200 boxes of screws over the coming year. Each box costs $400, the annual holding cost per box is $29, and the cost of placing an order is $50 (regardless of the quantity ordered). For the following questions, use the basic economic order quantity model (without quantity discounts).
1. What is the economic order quantity?
2. Calculate the annual inventory holding costs based on the average inventory level and annual holding cost per box.
3. Calculate the annual inventory ordering costs based on the number of orders expected to be placed during the coming year.
4. Create a data table showing the total inventory costs (only) for order quantities varying from 100 to 600 (use a step size of 20). You must use a data table structure to receive full credit for this problem. If you have any doubt as to what a data table is, please ask your lab TA.
5. Create a scatter chart (use the one with markers and smooth lines) showing how total inventory costs are a function of the order quantity. Be sure to label your axes appropriately.

Reference no: EM13104801

Questions Cloud

Determine the final mass of vapor in the tank : Water is contained in a closed, rigid, 0.25 m3 tank at an initial pressure of 5 bar and a quality of 60%. Heat transfer occurs until the tank contains only saturated vapor. Determine the final mass of vapor in the tank, in kg, and the final pressu..

Repeated weighings of specimen for confidence interval : A laboratory scale is known to have a standard deviation of = 0.001 gram in repeated weighings. Scale readings in repeated weighings are normally distributed, with mean equal to the true weight of the specimen.

Calculating confidence interval on mean : What is the difference between calculating a confidence interval on the mean vs calculating the confidence interval on a proportion?

Determine the net charge on each drop : Two negative, equally charged drops of water, 0.80 mm apart, exert an electrostatic force of 78.5 x 10-9 N on each other. Determine the net charge on each drop. Give your answer in the form "a.bc" pico-Coulombs.

Calculate the annual inventory ordering costs : A manufacturing operation must periodically purchase bulk quantities of machine screws. The operation expects to consume 18,200 boxes of screws over the coming year.

Probability that they will pass the proficiency exam : Suppose that students in a particular school are all very competent. For each individual, the probability that they will pass the proficiency exam (independent of thier classmates) is 0.99

Tests from confidence intervals : A confidence interval for the population mean tells us which values of mean are plausible (those inside the interval) and which values are not plausible (those outside the interval) at the chosen level of confidence.

Determine the magnitude of force between two point charges : Determine the magnitude of the force between two point charges, Q1 = -2e located at (-3.60 cm, +4.10 cm) and Q2 = -8e located at (-0.60 cm, -8.60 cm).

Calculate the annual inventory holding costs : A manufacturing operation must periodically purchase bulk quantities of machine screws. The operation expects to consume 18,200 boxes of screws over the coming year.

User Account

All Pages