What is the reorder point

Assignment Help Operation Management

Reference no: EM13223829

Cress Electronic products manufactures compnents used in the automotive indusry. Cress purches parts for use in its manufactoing operations from a variety of suppliers. One supplier provides a part where the assumptions of the EOQ model are realistic. The annual demand is 5000 units , the ordering costs are 80 per order and the annual holding cost rate is 25%
A. If the cost or part is $20 per unit what is the economic order quantity?
B. Assume 250 days of operation per year. If the lead time for an order is 12 days, what is the reorder point?
C. If the lead time for the parts is seven weeks, (35 days) what is the reorder point?

Reference no: EM13223829

Questions Cloud

Explain moderately strong bonds to p- donor ligands : Comment on the following observation: in its complexes, Co(III) forms strong bonds to O- and N- donor ligands, moderately strong bonds to P- donor ligands

Did training program actually increase the production rate : We want to determine if the training program was effective. Give the hypotheses for this problem. Compute the test statistic. At 95% confidence, test the hypotheses. That is, did the training program actually increase the production rates

What is the probilty that gac will sell all units it orders : What is the probilty that GAC will sell all units it orders?

Instrumental-informational-esteem-emotional-social network : Instrumental-informational-esteem-emotional-social network

What is the reorder point : If the lead time for the parts is seven weeks, (35 days) what is the reorder point?

An aa analysis of the sample determined that the ca2 : A total of 24.33 ml of 0.00245 M EDTA was used to titrate 100.00ml of a water sample. An AA analysis of the sample determined that the Ca2+ concentration is 9.32 mg/L.

What are the total annual holding and ordering costs : What are the total annual holding and ordering costs associated with your recommended EOQ?

Identify the reoder point in terms of the inventory position : Identify the reoder point in terms of the inventory position and in terms of the inventory on hard for each of the following lead times.

Identify a marketing research tool : Identify a marketing research tool that could be used to help define the dollar value of product benifits for a business customer. Explain.

User Account

All Pages