What would be the annual inventory holding cost

Assignment Help Operation Management

Reference no: EM13215587

Joe Henry's machine shop uses 2530 brackets during the course of a year. these brackets are purchased from a supplier 90 miles away. The following information is known about the brackets:

Annual demand 2530

Holding cost per bracket per year $1.55

Order cost per order$18.25

lead time 2 days

working days per year 250

What is the average inventory if the EOQ is used?

What would be the annual inventory holding cost?

Reference no: EM13215587

Questions Cloud

Small manufacture of electronic research equipment : Howard Electronics, a small manufacture of electronic research equipment, has approximately 6,600 items in its inventory and has hired Joan Blasco-Paul to managed inventory.

Which of the following compounds are insoluble in water : Which of the following compounds are insoluble in water?

Bottleneck operations : Explain the statement: "As long as the bottleneck operations are used effectively, idle time in nonbottleneck operations will not affect the overall productivity of the system."

Would the company be better off using direct labor cost : Harris, Inc., has just completed job nos. 78 and 79, which were similar in terms of complexity, production processes, and units manufactured. Job no. 78 was manufactured by Joe Barton who earns $14 per hour, whereas job no. 79 was completed by Sus..

What would be the annual inventory holding cost : What is the average inventory if the EOQ is used and what would be the annual inventory holding cost?

Explain the accounting information for financial management : Write a 700- to 1,000-word paper identifying the specific cost accounting system an organization utilizes and how it uses the accounting information for financial management. Your paper must include the following

What is the service level or critical fractile : What is the service level or critical fractile and what is the under-stocking cost Cu and what is the over-stocking cost Co

What is the fergusons 2013 federal income taxes payable : In addition to the $750 of Web design expenses, John attended a conference to improve his skills associated with his Web design work. His trip was for three days and he incurred the following expenses: airfare $370, total taxi fares for trip $180,..

Explore the effects of acid rain pre and post : Explore the effects of acid rain pre and post the 1990 Clean Air Act. Pair up and choose one of the topics listed below. One person should research and report on the damage that was being observed due to acid rain prior to 1990.

User Account

All Pages