What is the annual total cost-holding-ordering

Assignment Help Operation Management

Reference no: EM13844845

Joe's Camera shop has a favourite model that has annual sales of 145. The cost to place an order to replenish inventory is $25 per order, and annual inventory costs are $20. Assume the store is open 350 days per year.

a. What is the optimal order size, EOQ?

b. What is the optimal number of orders per year?

c. What is the annual total cost (holding + ordering)?

d. What is the importance of knowing this information?

Reference no: EM13844845

Questions Cloud

Write about that particular issue symptom within the case : Write about that particular issue symptom within the case, along with the possible and the best courses of action to those issues they have chosen.

Section on common biases and errors in decision making : Insurance companies in the state of Florida earned record profits in 2006, suggesting in light of the calm hurricane seasons (in Florida) in 2005-2007 that Nationwide's decision to cancel policies may have cost the company potential revenue and custo..

Analyze why the journalist believes the topic is newsworthy : Distinguish between "facts" as set forth by the author and "opinions" of the author (discuss this). Analyze why the journalist believes the topic is newsworthy. Finally, compare the article with how a sociologist (using ONE of the three major theo..

Area corresponding to the probability shaded : Assume the random variable X is normally distributed with mean μ = 50 and standard deviation σ = 7. Compute the probability. Be sure to draw a normal curve with the area curve with the area corresponding to the probability shaded.

What is the annual total cost-holding-ordering : Joe's Camera shop has a favourite model that has annual sales of 145. The cost to place an order to replenish inventory is $25 per order, and annual inventory costs are $20. Assume the store is open 350 days per year. What is the annual total cost (h..

Briefly describe the older adult with whom you interacted : Briefly describe the older adult with whom you interacted, as well as the event/activity or nature of your interaction. Describe the cognitive, physical, and social activities that this older person engages in on a regular basis

Evaluate two machines-determines that they have costs shown : Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table. The company thinks it knows how to make 12% on investments no more risky than this one.

Strengths and weaknesses of the counselor work with william : Consider the case study of William. Following your careful consideration of this case study, discuss and evaluate the assessment, diagnosis, and treatment planning processes demonstrated by this case study. What do you see as the strengths and wea..

Decided that concession sales will support themselves : As a manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. Last year’s manager, Jim Freeland, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You esti..

User Account

All Pages