The xyz inc buys mother boards for its computer assembly

Assignment Help Basic Statistics

Reference no: EM13615158

The XYZ Inc. buys mother boards for its computer assembly. The following information is available, use generally accepted rounding rules. You will need to develop an excel program for handling this problem.

Annual Demand, units/year	40,000
Order Cost, $/per order	$20
Carrying Costs (annual), as of unit cost	0.3
Unit Costs, $/per unit	$50
Lead Time (days)	5
Safety Stock, units	20
Days of a Calendar Year	250

Answer

		a. EOQ= ?2DO/IC, D=demand, O=order cost; I=inventory carrying cost as of unit cost; C=unit cost is $327
		b. Total Orders a Year is 222
		Maximum Inventory is not 347
		d. Minimum Inventory is 0
		e. Average Inventory is 183
		f. Reorder Point is 820
		g. Annual Inventory Carrying Costs is $2,749
		h. Annual Inventory Carrying Costs & Order Costs is $5,199

Reference no: EM13615158

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