What is the annual holding cost-annual ordering cost

Assignment Help Operation Management

Reference no: EM132300749

Hiking Boots R Us is a local shoe store in Franklin. Annual demand for a popular hiking boot is 700 pairs per year, and Nairo Quintana, the owner of Hiking Boots R Us, has the habit of ordering 60 pairs of these hiking boots every time he places an order. Nairo estimates that the ordering cost is $20 and the cost of the hiking boots is $63. (Goal Seek would be useful if you are using the Excel template, otherwise you can use the equations, this is a situation when you know “Q” and are determining other parameters in the calculation of “Q”).

a) What is the annual ordering cost if the optimal ordering quantity is 60?

b) What is the carrying cost (%) if the optimal ordering quantity is 60? (Enter real number- i.e. 12.5% should be entered as 12.5)

c) What is the annual holding cost if the optimal ordering quantity is 60?

d) What is the EOQ if carrying cost is 15%?

Reference no: EM132300749

Questions Cloud

Common problems of preparing marketing research report : Explain what you see as some of the common problems of preparing a marketing research report.

Best characterizes the industry described in the article : Identify the market structure that best characterizes the industry described in the article.

The purpose of executive summary is to convey : The purpose of an executive summary is to convey how and why the research was undertaken, to summarize the key findings, to suggest future actions.

Professional in midst of conflict and corporate politics : Determine and describe ten best practices for negotiating like a professional in the midst of conflict and corporate politics.

What is the annual holding cost-annual ordering cost : What is the annual ordering cost if the optimal ordering quantity is 60? What is the annual holding cost if the optimal ordering quantity is 60?

Shift allowance and work time allowance : What is the difference between a shift allowance and a work time allowance?

Discuss the concept of discipline level : Briefly discuss the concept of a discipline level. Give two reasons why wood is a good material for a handle.

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.

Energy proposed project impact organization regarding tools : How does Solar Energy Proposed Project impact the organization regarding Tools, Roles and responsible, organizational processes etc.

User Account

All Pages