Insurance company chain with central inventory operation

Assignment Help Operation Management

Reference no: EM132203662

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation.? Thomas's fastest-moving inventory item has a demand of 5,850 units per year. The cost of each unit is $103?, and the inventory carrying cost is $9 per unit per year. The average ordering cost is $31 per order. It takes about 5 days for an order to? arrive, and the demand for 1 week is 117 units.? (This is a corporate? operation, and there are 250 working days per?year).

?a) What is the? EOQ? ___ units ?(round your response to two decimal? places).

b) What is the average inventory if the EOQ is? used? ___ units ?(round your response to two decimal? places).

c) What is the optimal number of orders per? year? ___ orders ?(round your response to two decimal? places).

d) What is the optimal number of days in between any two? orders? ___ days ?(round your response to two decimal? places).

e) What is the annual cost of ordering and holding? inventory? $____ per year ?(round your response to two decimal? places).

f) What is the total annual inventory? cost, including the cost of the 5,850 units? $___ per year ?(round your response to two decimal? places).

Reference no: EM132203662

Questions Cloud

Increase in cash flows from financing activities : Ando Company sold some of its plant assets during 2017. The original cost of the plant assets was $500,000 and the accumulated depreciation

Effort given the changes in consumer expectations : What should the charge to this group be? What are the goals of this effort given the changes in consumer expectations?

Net book value for long-lived fixed asset : ABC started business on January 1 with the following long-lived fixed assets:

Decided to auction her strapless giraffe print dress : Candie Cardigan as a representative for CARDWARE has decided to auction her strapless giraffe print dress made of silk, satin with velvet markings.

Insurance company chain with central inventory operation : Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation.?

Consider characterization in film : Consider characterization in film. What sorts of techniques and elements do filmmakers make use of to develop their characters?

Tireland makes a product : Randy's tireland makes a product that sells for $60 per unit and has $42 per unit in variable costs.

Public relations in multiple countries simultaneously : Firms that do business internationally must often use public relations in multiple countries simultaneously

Discuss implementation tactics for Hoosier Media Inc : For the next phase of your consulting engagement, Propose marketing and information technology implementation tactics for Hoosier Media, Inc

User Account

All Pages