Compute the annual inventory turnover rate

Assignment Help Operation Management
Reference no: EM13100922

Johnson corporation has the following information about a product that it carries in stock: Average demand= 40 units per day Average lead time= 15 days Item unit cost= $55 for orders of less than 400 units Item unit cost= $50 for orders of 400 units or more Ordering cost=$30 Inventory carrying cost= 20%... The business year is 300 and the standard deviation of demand= 2.5 units and the standard deviation of lead time=1.5days, with desired service level= 97.5% A: What's the annual total acquisition cost of ordering at the price of $55 and $50?... B :What level of safety stock should Johnson maintain for the item? C:If Johnson chooses the ordering policy that results in the lowest total annual acquisition cost , and maintains the safety stock level for 97.5 percent service, what will Johnson's average inventory be for this item? D: what will the annual inventory turnover rate be for this item? E:what will the reorder point be for this item?

Reference no: EM13100922

Questions Cloud

What respective claims of bates and cramer : Ames had found more profitable ventures and refused to resold either lawn at the specified price. Bates and cramer brought an appropriate action against Ames for breach of contract. Decisions as to the respective claims of Bates and Cramer?
At instant what is phase di erence between points a and b : A wave source generates circular waves that spread out from it on the surface of a pond. The wavelength of these waves is 6.00 cm. (a) At some instant a crest is passing point A.
Maximizing the total market value : If Stephenson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain.
Examine organisation-s approach to leadership and hrm : Choose the real organization which you think achieves success through good leadership and successfull human resource management.
Compute the annual inventory turnover rate : Johnson corporation has the following information about a product that it carries in stock: Average demand= 40 units per day Average lead time= 15 days Item unit cost= $55 for orders of less than 400 units Item unit cost= $50 for orders.
Illustrate what is its intrinsic mva : A company has capital of $200 million. It has an EROIC of 9%, forecasted constant growth of 5% and a WACC of 10%. Illustrate what is its value of operations? Illustrate what is its intrinsic MVA?
Serve foreign markets through subsidiaries : Internalization - Operate in domestic market only and serve foreign markets through subsidiaries
Name several well known organizations that are bureaucracies : Name several well known organizations that are bureaucracies. Can you think of two organizations that are still run according to the scientific management theory?
What is the wavelength of the waves produced on the wire : What is the wavelength of the waves produced on the wire.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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