Calculate economic order quantity-average inventory level

Assignment Help Operation Management
Reference no: EM131118401

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each. Annual demand is 5,000 heat sinks, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $56. Bill Maze, recently hired by Custom Computers, Inc., has suggested using the economic order quantity for the heat sinks. Calculate economic order quantity. units (Round your answer to 2 decimal places, the tolerance is +/-0.01.) LINK TO TEXT Calculate average inventory level. units (Round your answer to 2 decimal places, the tolerance is +/-0.02. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate number of orders placed per year. (Round your answer to 2 decimal places, the tolerance is +/-0.01. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate total annual ordering cost. $ (Round your answer to 2 decimal places. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate total annual holding cost. $ (Round your answer to 2 decimal places. Do not round intermediate results used to achieve this answer.) LINK TO TEXT Calculate total annual cost. $ (Round your answer to 2 decimal places.)

Reference no: EM131118401

Questions Cloud

What is the most economical order quantity : A firm machinery manufacture requires 7,000 air filters per year as replacement parts on mechanical harvesters. The filters cost $3 each and are stored in rented facilities at a cost of $.35 per unit-year, with storage requirements based upon the max..
Must the contract be in writing to be enforceable : ABC company hired Andrew as its research director. The terms of the employment contract is five years. As ABC knows at the moment of signing, Andrew is terminally ill when the contract is created, and is not expected to live more than nine months. Mu..
Virtual financial project : You are the project manager of a large, virtual financial project. You want to improve the functioning of the project team. Which of the techniques below would not likely improve the effectiveness and efficiency of the project team?
Calculate total annual costs using the EOQ ordering policy : Sam’s Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The shop operates fifty-two weeks per year and weekly demand is 156 filters. Calculate the total annual costs associated with Sam..
Calculate economic order quantity-average inventory level : Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each. Annual demand is 5,000 heat sinks, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be ..
Calculate average inventory level : Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,300 units. Annual demand is 5,100 heat sinks, the annual inventory holding cost rate is $4 per unit, and t..
Calculate the total annual holding costs : Frederick’s Farm Factory (FFF) currently marintains an average inventory valued at $3,400,000. The company estimates its capital cost at 10 percent, its storage cost at 4.5 percent, and its risk cost at 6 percent. Calculate the annual holding cost ra..
What are some of benefits and concepts of project management : With regards to supply chain management in a healthcare setting, discuss some of the benefits of forecasting. What are some of the benefits and concepts of project management? How is project management beneficial? Discuss. Give an example of project ..
Calculate the expected inventory turnover : Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at GR was $3,000,000. Genuine Reproductions (GR) plans on increasin..

Reviews

Write a Review

 

Operation Management Questions & Answers

  Ethical implications to the stakeholders

Analyze two to three (2-3) current events from the past two (2) years (using the e-Activity in Week 4*) focusing on the administrative responsibility and ethical implications to the stakeholders, organization, and public regarding the issues in de..

  Using a grand matrix approach

Using a Grand Matrix approach, what strategies are recommended for a firm that is a weak competitor in a slow-growing market? Elaborate on what these strategies could mean foe a college or university. Response should be at least 200 words in length.

  Sufficiently profitable to validate business model-strategy

Red Hat Inc. is a very interesting company. Founded in 1993, it has become the leading provider of open source solutions and has been named the number one Enterprise Software Vendor for four consecutive years over companies like Citrix Systems, Adobe..

  Logistics technology be used to real-time decision-making

How can information logistics technology be used to facilitate real-time decision-making in your organization's logistics network

  Describe relationship between planning and organizing

Fully describe relationship between planning and organizing. Explain how the controlling function does or does not relate significantly to the planning function.

  Write down the main elements of the air transportation

what are the main elements of the air transportation infrastructure? how would the quality and dependability of the air

  Conduct an internal assessment using swot analysis

Evaluate the company's business strategy and global competitiveness plan. Conduct an internal assessment using SWOT analysis.

  Manufacturing processes requiring continuous replenishment

American International Automotive Industries (AIAI) manufactures auto and truck engine, transmission, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asia, and Europe. Its customers in Vie..

  Considering the possibility of building an additional factor

Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering two options. The first is a small facility that it could build at a cost of ..

  How did hasting big five model of personality leadership

How did Hasting Big Five model of personality leadership traits change from Pure Software to Netflix? Which leadership styles did Hasting use at Pure Software and Netflix? How effectively were these leadership styles used? Explain how power, organiza..

  What is the status of the internet contract

Did Beth commit any crimes? What is the status of the Internet contract?

  Hr manager for a medium size company

Assume for a moment that you are the HR Manager for a medium size company. How would you try to get individual managers to be more aware of the legal requirements of staffing systems and to take steps to ensure that they themselves engage in legal..

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