Inventory level under the economic order quantity policy

Assignment Help Operation Management

Reference no: EM132217692

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1300 units. Annual demand is 5200 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $50.

1) What is the average inventory level under the economic order quantity policy?

2) What is the number of orders placed per year under the economic order quantity policy?

3) What is the total annual ordering cost under the economic order quantity policy?

4) What is the total annual holding cost under the economic order quantity policy?

5) What is the total annual cost under the economic order quantity policy?

Reference no: EM132217692

Questions Cloud

Marketing is part of every sport organization : Marketing is a part of every sport organization. How does this person’s current position or past activities reflect sales experience?

Difference between delivery platform and user interface : Explain the functional difference between a delivery platform and a user interface.

True of the low-involvement hierarchy : Which of the following is true of the low-involvement hierarchy? From a promotional planning perspective, it is important that marketers:

Functions of information systems support company : Describe how the functions of information systems support a company.

Inventory level under the economic order quantity policy : What is the average inventory level under the economic order quantity policy? What is the total annual cost under the economic order quantity policy?

What do you dislike about working in groups : What do you like about working in groups? What do you dislike about working in groups?

Describe the on boarding and orientation process : Describe the on boarding and orientation process for new employees in your organization.

Authors perspective as relates to emphasis on accountability : Discuss in detail the authors perspective as it relates to Emphasis on Accountability. Do you agree her perspective? Why or why not?

Perform mass balance and flow diagram : Seventy-eight percent of the metal parts are sold per day with the remainder stored internally. Perform a mass balance and a flow diagram.

User Account

All Pages