Find average inventory, Operation Management

Assignment Help:

A grocery store needs to sell 3,000 cartons of 2L 2% milk per month. The sales is relatively constant throughout the month. The owner of this grocery store purchases milk from a supplier 50 miles away for $2 per carton, and it takes a day to restock. The holding cost per carton per month is $1.5, and the ordering cost per order is about $18.5 including labor, gas and depreciation. Consider a month of 30 days.

The optimal order quantity is about cartons of milk, and the average inventory is about cartons. (Please round to the closest integer and include no units.)

Given the optimal order quantity calculated above, if the average inventory is 136 cartons, then the monthly holding cost is dollars, and the total cost including the cost of supply, holding and ordering is dollars.

The reorder point is cartons.


Related Discussions:- Find average inventory

Find probability distribution of single lot containing fault, A quality con...

A quality control unit in ball-bearing manufacturing company keeps record of error in terms of the number of faulty balls (W) per a lot. The size of standard lot is 8, and the prob

Explain strategic analysis, Strategic analysis is an important first step i...

Strategic analysis is an important first step in setting strategic direction

Explain effects of indiscipline, Explain effects of indiscipline. Effe...

Explain effects of indiscipline. Effects of Indiscipline: The indiscipline in industry brings in exact adverse effects. These are as given here:- a) Increase in the give

The study of global business is relevant to work company, Discuss the follo...

Discuss the following theory: The study of global business is relevant if you work or plan to work in a large multinational company, but it has little or no significance for indivi

Models, under which topic in operations management are models found?

under which topic in operations management are models found?

Explain supply chain excellence, Discuss the four enablers of purchasing an...

Discuss the four enablers of purchasing and supply chain excellence.

Explain what are the upper and lower control chart limits, The defect rate ...

The defect rate for a product has historically been about 2.4%. What are the upper and lower control chart limits for a p-chart, if you wish to use a sample size of 100 and 3-sigma

Write Your Message!

Captcha
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