Determine the annual cost of storing hd-60

Assignment Help Operation Management

Reference no: EM13394144

Assume you are building custom motorcycles. All custom bikes use some standard parts. Part number HD-60 is stocked in your inventory of component parts. Each year you use about 2,000 HD-60 components at a cost of $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for HD-60 components, it costs $10.

(a) How many items of HD-60 should be ordered at a time?

(b) What are the annual costs of ordering HD-60 components?

Reference no: EM13394144

Questions Cloud

The service industry makes up approximately what percentage : 1. the service industry makes up approximately what percentage of all jobs in the united states-2. which is not true

Reason whether global economy will return to mercantilist : globalization was welcomed around the world at the beginning of the 1990s. different trade theories were used to

When the genesis and sensible essential teams held their : when the genesis and sensible essential teams held their weekly meeting the time value of money and its applicability

Explain the purpose of closing entries is there any : explain the purpose of closing entries. is there any difference in how closing entries are recorded as compared with

Determine the annual cost of storing hd-60 : assume you are building custom motorcycles. all custom bikes use some standard parts. part number hd-60 is stocked in

Hewlett-packard sells personal computers through specialty : 1 big fizz co. a manufacturer of cola-flavored drinks wants to add packaged fruit juices to its existing product line.

Buy new treasury bonds equal to 5 of gdp find percentage of : if the fiscal deficit is 7 of gdp and the public both domestic and foreign buy new treasury bonds equal to 5 of gdp

Compare and contrast gneral motros and ford in terms of how : 1.identify two items or issues that cannot be derived from the financial statements of general motors and ford. explain

Calculate after tax rate of return of alternative using : the plant has accumulated savings of 60000 to acquire a new machine for quality assurance. the new quality control

User Account

All Pages