Insurance company chain with central inventory operation

Assignment Help Operation Management

Reference no: EM132244457

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 6,000 units per year. The cost of each unit is $102, and the inventory carrying cost is $8 per unit per year. The averager ordering cost is $31 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 120 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 6,100 units____per year ?(round your response to two decimal? places).

Reference no: EM132244457

Questions Cloud

Process of deciding optimal order quantity of shampoo packs : You are in the process of deciding the optimal order quantity of shampoo packs for a hotel.

In light of the potential negative impact on the community : In light of the potential negative impact on the community, how readily should a state government use its involuntary corporate dissolution right?

Do you know the mission and vision of your organization : What exactly is a mission statement? A vision statement? Do you know the mission and vision of your organization?

Technology force most workers to be continuous learners : How does the widespread use of information and communication technology force most workers to be continuous learners?

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.

True concerning the arbitration of international disputes : Which is not an institution of the European Union? Which of the following is not true concerning the arbitration of international disputes:

Purpose of emergency medical treatment and active labor act : Discuss the purpose of the emergency Medical Treatment and Active Labor Act.

What happens when consideration fails : What happens when consideration fails? Under the contract laws of most states, where consideration fails, there is no contract.

Kinds of information are considered material information : What kinds of information are considered "material information" when discussing insider trading? Would the information Bobby used be considered material?

User Account

All Pages