How many orders will be placed each year the next order

Reference no: EM13470374

A plant orders Chemical X that is used at a rate of 800 barrels per year. Each order placed with the supplier costs $45 to process and the annual cost to hold inventory is $80 per barrel. Delivery lead time of the barrels averages 6 days and the plant manager set a safety stock level of 16 barrels.

a) What is the economic order quantity?

b) What is the total holding cost for the year?

c) What is the total ordering cost for the year?

d) How many orders will be placed each year?

e) The next order should be placed when inventory drops to what amount? (assume 365 days in one year for converting annual demand to daily demand)

Reference no: EM13470374

Questions Cloud

Define the principles of risk management that apply to the : as a new security manager for a retail operation you have been asked to create a new loss prevention and risk

Most of the operating systems use a virtual memory manager : most operating systems use a virtual memory manager vmm whose responsibility is to manage the relationship between the

Describing the goals and objectives that a security : write a 700- to 1050-word paper describing the goals and objectives that a security organization must focus on in both

Analyze how the chosen theory might approach the decision : draft a six- to eight-page paper based upon a life-changing decision you or someone in your community has had to

How many orders will be placed each year the next order : a plant orders chemical x that is used atnbspa rate of 800 barrels per year. each order placed with the supplier costs

What is the estimated cost for preventing and mitigating : repare a comprehensive emergency management plan based on actions to mitigate security threats. identify preventative

Should all educators have a background in philosophy would : should all educators have a background in philosophy? would having a background in philosophy benefit teachers and

Write an essay of approximately 250 - 300 words on the : write an essay of approximately 250 - 300 words on the topic based on chapter two mind of the book think - a compelling

How are these efforts similar to and different from the : write a 1400- to 1750-word paper exploring the differences between terrorism and criminal activity from economic

User Account

All Pages