What is the annual operating cost of the inventory system

Assignment Help Operation Management
Reference no: EM13962585

The corner convenience store (CCS) gets its cool drinks delivered by a wholesaler at CCS, light cola sells at a rate of 40 six-packs per day. the shop is open 250 days per year. a six pack of light cola costs CCS $24. annual holding cost is 10% of the cost of the cola. It costs CCS $350 to place an order and this covers any delivery charge the wholesaler only sells in six packs.

a) determine the Economic order quantity (EOQ)

b) determine the average stock held

c) Calculate the annual holding cost

d) How many orders should be placed per year?

e) Calculate the annual ordering cost

f) what is the annual operating cost of the inventory system?

g) How much will CCS spend on buying light cola per year?

Reference no: EM13962585

Questions Cloud

Interrelationship between revenue cycle and reimbursement : Analyze the interrelationship between the revenue cycle and reimbursement and assess its contributors. Think about questions such as how revenue is generated throughout the healthcare organization, which departments impact revenue as well as reimburs..
What do you think are the strongest arguments for abortion : After reviewing the readings for this topic, what do you think are the strongest arguments for and against the right to abortion? Explain. Do the same principles apply to euthanasia? Explain
How new detectors allow to see more electromagnetic spectrum : Discuss how new detectors that allow us to see more of the electromagnetic spectrum (outside of visible light) have opened up new astronomical knowledge. NOTE AGAIN: this answer should discuss electromagnetic radiation that is NOT visible light.
What will be force if distance is reduced to one ninth of it : A metal sphere has a charge of +8.0 micro C. What is the charge after 6.0 x 10^13 electrons have been placed on it and Two Charge attract each other with force of 1.5N. What will be the force if the distance is reduced to one ninth of it original va..
What is the annual operating cost of the inventory system : The corner convenience store (CCS) gets its cool drinks delivered by a wholesaler at CCS, light cola sells at a rate of 40 six-packs per day. the shop is open 250 days per year. determine the Economic order quantity (EOQ). determine the average stock..
Resources used in the production of wine : If the vineyard could secure one additional unit of any of the resources used in the production of wine, which one should it select? (Use shadow price)
Relatively limited budget and person power : You are in charge of alcohol and substance abuse control for a local agency. Realizing that a lot of your effort is directed and building local skills in the county related to behavior change strategies, how would you design your program to reach the..
Do you think faith in god requires a blind leap : Assess Kierkegaard's view of faith and reason. Do you think faith in God requires a "blind leap" into the dark
What management-organization and technology factors : What management, organization, and technology factors should be considered in order to facilitate the communications of an Internet/web presence?

Reviews

Write a Review

Operation Management Questions & Answers

  Most discussed systems for improving productivity

Who created the basic framework for the world's most discussed systems for improving productivity, JIT, and lean manufacturing?

  How many pages are needed to store the entire job

1.Assume a program has 510 bytes and will be loaded into page frames of  256 bytes each, and the instruction to be used is at byte 377. Answer the  following questions:  a. How many pages are needed to store the entire job? b. Compute the page number..

  Creating linear series of numbers

Create a procedure in VBA to do the following actions: Create a linear series of numbers starting at 1 (e.g. 1, 2, 3, ...) -Display a Message Box asking if you'd like to calculate another number.

  Calculate the productivity in sales revenue

As operations manager. you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report:

  Illustrate what principles of operations management

Any equipment which is in need of repair or replacement is removed for off-site service (or replacement) prior to the next day. Illustrate what Principles of Operations Management are supported by this policy.

  What happens if just one of the triple constraint variables

what happens if just one of the triple constraint variables cost time or scope of a project changes? what would happen

  What are the pros and cons of each one

What are the pros and cons of each one? Assume that you decided to use a conventional method going through major retailers such as Best Buy, Sam's Club, etc. What vertical integration method would you pursue to minimize channel conflict? Why

  Team to ensure diversity and expertise to fill various role

Teams have different needs, and people in organizations should be selected for a team to ensure diversity and expertise to fill various roles. Study the nine team roles and share one role you personally played in a team. How did it go? Be sure to ..

  Compare virtual teams and traditional teams

Compare Virtual and Traditional Teams Write an essay on the seven types of virtual teams. Identify the various events or situations that each team type best performs. Compare virtual teams and traditional teams.

  Explain the mcgregors theory x-y

Explain the McGregor's Theory x-y , the pros and cons of the theory.

  What are the business dimensions for your analysis

You are the vice president of marketing for a nation-wide appliance manufacturer with three production plants. Describe any three different ways you will tend to analyze your sales. What are the business dimensions for your analysis?

  Calculate contributions in profit

Joe Jenkins, owner of Jenkins Manufacturing, is considering whether to produce a new product. He has considered the operations requirements for the product as well as the market potential.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd