Office supply store demand an average

Reference no: EM131106502

Customers at Joe's Office Supply Store demand an average of 6000 desks per year. Each time an order is placed, an ordering cost of $300 is incurred. The annual holding cost for a single desk is 25% of the $200 cost of a desk. One week elapses between the placement of an order and the arrival of the order. In parts a to d, assume that no shortages are allowed.

a. Each time an order is placed, how many desks should be ordered?

b. How many orders should be placed each year?

c. Determine the total annual costs (excluding purchasing costs) of meeting the customers' demands for desks.

d. If the lead time is five weeks, what is the reorder point? (One year equals 52 weeks.)

e. How do the answers to parts a and b change if shortages are allowed and a cost of $80 is incurred if Joe's is short one desk for one year?

Reference no: EM131106502

Questions Cloud

Camera depends on the number of cameras ordered : A camera store sells an average of 100 cameras per month. The cost of holding a camera in inventory for a year is 30% of the price the camera shop pays for the camera.

What amount should reve report as net cash used : What amount should Reve report as net cash used in investing activities - what amount should Reve report as net cash provided by financing activities?

What would the afn equation predict the company : Assume (1) that NWC was operating at full capacity in 2008 with respect to all assets, (2) that all assets must grow at the same rate as sales, (3) that accounts payable and accrued liabilities also will grow at the same rate as sales, and (4) that t..

Wilco corporation has the following account balances : Wilco Corporation has the following account balances at December 31, 2010. Prepare Wilco's December 31, 2010, stockholders' equitysection.

Office supply store demand an average : Customers at Joe's Office Supply Store demand an average of 6000 desks per year. Each time an order is placed, an ordering cost of $300 is incurred.

Is long-term strategic planning worth it : Is long-term strategic planning worth it? Why or why not? If it is, what is an appropriate planning window (months, years, etc.)? How do you plan for contingencies? Explain.

Why you think emails are so often misunderstood : Why you think emails are so often misunderstood. Give examples or experiences to enhance your posting. What are the strengths and weakness of email in a business setting?

How would you describe the term digital footprint : How would you describe the term digital footprint? What obligations do you believe an organization has toward the digital footprint? What should an individual do to protect their own digital footprint and guard against improper use?

How much more quickly can digital images be retrieved : At least how much more quickly can digital images be retrieved? Use the data above to answer at the 95% confidence level; justify, if possible, any assumptions you make

User Account

All Pages