Calculate the optimal order quantity-reorder point

Assignment Help Operation Management

Reference no: EM131275956

Annual demand for chairs is 5000 chairs, and there are 250 selling days in a year. A chair costs $100 each, placing an order costs $40, and the time to recieve an order is 10 days. Your company's cost of capital is 9%

Part 1: Calculate the optimal order quantity, reorder point, and the total annual cost to manage the chair business.

Part 2: What are the average inventory levels (# of units), average inventory value, and inventory turnover in this situation?

Part 3: What happens in Part 1, if the order processing cost increases to $160 per order?

Reference no: EM131275956

Questions Cloud

What intentional and unintentional respondent errors are : Indicate what are specific intentional and unintentional respondent errors are likely with each of the given surveys.

Create a procedure that returns the most recent order status : Create a procedure that returns the most recent order status information for a specified basket - Create a procedure named DDPROJ_SP that retrieves project information for a specific project based on a project ID. The procedure should have two para..

What is the voltage output of the thermopile : The thermopile of Prob. 8.61 is exposed to a temperature differential with the junction sets at 500 and 600?C. What is the voltage output of the thermopile? How much does it differ from the output calculated in Prob. 8.61 for the same temperature ..

Article on adverse reaction to drugs taken in combination : prepare two pages on adverse reactions to drugs taken in combination

Calculate the optimal order quantity-reorder point : Annual demand for chairs is 5000 chairs, and there are 250 selling days in a year. A chair costs $100 each, placing an order costs $40, and the time to recieve an order is 10 days. Your company's cost of capital is 9%. Calculate the optimal order qua..

How do you define a completion : How do you define a "completion," and how does this definition help a researcher deal with incomplete questionnaires?

What will be the true air temperature : The walls of the room behave nearly like a black surface and the thermometer has ? = 0.9 and a convection heat-transfer coefficient of 14 W/m2 · ?C. When the thermometer reads 28?C, what will be the true air temperature?

Indicate what data analysis is and why it is useful : Indicate what data analysis is and why it is useful.- What is a measure of central tendency, and what does it describe?

Calculate the true temperature of the solid : The thermocouple effective diameter is 2 mm and it is exposed to a convection environment at 20? with h = 125 W/m2 · ?C. The convection coefficient to the solid is 15 W/m2 · ?C. The thermocouple indicates a solid temperature of 125?C. Calculate the t..

User Account

All Pages