Maintain inventory of ten different types of ink cartridges

Assignment Help Operation Management

Reference no: EM13761353

Suppose my office uses ten different kinds of inkjet printers, and as a result I need to maintain inventory of ten different types of ink cartridges. This is a large office, and the average demand for each type of cartridge is 15 cartridges per month. My ordering cost is $10.00 per order, and the carrying cost is $2.00 per cartridge per month. What is the optimal order quantity for the inkjet cartridges? (Note, I will need to be maintaining separate inventories and placing orders for each of the ten different types of cartridges. Assume we are using a Q,R system and the different cartridges will be hitting their order points at different points in time.) What is the total annual ordering plus carrying cost of the inventory system, for all ten items? HINT: Find the optimal order quantity and total cost for one of these cartridges. The total cost for all ten types of cartridge is ten times the cost for one.

Suppose in the problem above I could standardize the printers being used, so that all of the printers in my office all use the same inkjet cartridge. Now, instead of 10 different cartridges each having demand of 15 per month, I have one type of cartridge that experiences demand of 150 cartridges per month. What is the optimal order quantity for this standardized inkjet cartridge? How does the total annual ordering plus carrying cost compare to the total cost from the problem above? Explain.

Reference no: EM13761353

Questions Cloud

Would you recommend that it adopt such a strategy : Suppose Router borrowed 20% of its capital at a 7.6% rate, then borrowed an additional 20% at a higher rate, bringing its debt up to a total of 40% of capital. If it did this, would it end up with an average cost of debt that is lower than if it had ..

Back-end merger requiring a shareholder vote : A acquisition deal was structured as a tender offer coupled with a top-up option to be followed by a back-end short-form merger. Why might this structure be preferable to a more common statutory merger deal or a tender offer followed by a back-end me..

Effectively deploy those resources and capabilities : What percentage of organizations do you believe really understand (thoroughly) what resources and capabilities they own, which they need to develop or acquire, and how they should effectively deploy those resources and capabilities? Provide a rationa..

Socially responsible approaches to strategic viability : What are the roles of planning and decision making processes in developing socially responsible approaches to strategic viability

Maintain inventory of ten different types of ink cartridges : Suppose my office uses ten different kinds of inkjet printers, and as a result I need to maintain inventory of ten different types of ink cartridges. This is a large office, and the average demand for each type of cartridge is 15 cartridges per month..

Organizations virtual human resource function : How has the emergence of the Internet changed the way that organizations plan and manage their human resource needs? What a kind of human resource activates might we see developed over the next several years? What specialized skills will the future H..

Effects of power on organizational structure : Effects of power on organizational structure: Identifies sources and effects of power on organizational structure, and Recommends how to evaluate organizational design/strategy in a global operations environment.

Supply chain-identify key risks in the methods : In a company’s supply chain, what are 3 ways you might find out what customers expect. Identify key risks in the methods.

Objective of risk management is the mitigation of the risk : The main objective of Risk Management is the mitigation of the risk. Risk avoidance is essential to effective Internal Control. Internal Auditors need not be "independent" , while External Auditors must be. In accordance with SOX, D&)s have sole resp..

User Account

All Pages