What is the total annual order and inventory holding costs

Reference no: EM13235616

High Tech, Inc. is a virtual store that stocks a variety of calculators in their warehouse. Customer orders are placed, the order is picked and packaged, and then shipped to the customer. A fixed order quantity inventory control system helps monitor and control these SKUs. The following information is for one of the calculators that they stock, sell, and ship.
Average demand 12.5 calculators per week
Lead time 3 weeks
Order cost $20/order
Holding cost $1.20/claculator/year
Number of weeks 52 weeks per year
Standard Deviation of weekly demand 3.75 calculators
SKU service level 90 percent

Schedule receipts 20 calculators
Backorders 2 calculators

Current on-hand inventory 35 calcutors

What is the EOQ. What is the total annual order and inventory holding costs for the EOQ.What is the reorder point without safety stock. What is the reorder with safety stock. Based on te previous information, should a fixed order quanity be placed, and if so, for how many calculators

Reference no: EM13235616

Questions Cloud

What would have been the cost of the toner catridge : In need of a new toner cartridge for my laser printer I came across the online retailer, supermediastore.com. Their policy is that all orders for $25 or more ship for free. My toner cartridge was $16.99 plus $12.34 for shipping.

Determine the industrys current attractiveness : Analyze BP using the five forces of competition model to determine the industry's current attractiveness in terms of profit potential.

What is the net flux of electric field : A pyramid has a square base and four faces which are equilateral triangles. A charge Q is placed on the center of the base of the pyramid, What is the net flux of electric field

How should bp have handled external environmental analysis : How should BP have handled an external environmental analysis and what environmental change and trends (opportunities and threats) might they have discovered?

What is the total annual order and inventory holding costs : Customer orders are placed, the order is picked and packaged, and then shipped to the customer. A fixed order quantity inventory control system helps monitor and control these SKUs. The following information is for one of the calculators that they..

State precipitate of cu form when naoh is added solution : Will a precipitate of Cu(OH)2 (Ksp = 1.6x10-19) form when 10.0 mL of 0.010 M NaOH is added to 1.00 L of a 0.010 M CuCl2 solution

What should the wedding business owners : What external environment (general, industry, and competitive) segments do you think BP considered or didn't consider prior to their drilling off the Gulf Coast? What should the wedding business owners now consider in their external environment?

Arithmetic and application of summaries : Write some R code that carries out computation, but do it with a single R expression that contains no commas (,) and no braces ({}).

What theory or theory might court use to hold wallace liable : Dale Emerson served as the chief financial officer for Reliant Electric Company, a distributor of electricity serving portions of Montana and North Dakota. Reliant was in the final stages of planning a takeover of Dakota Gasworks

User Account

All Pages