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ABC Aircraft uses 2,000 drill bits annually. Each drill bit costs $50 and each order ABC places costs $30. The annual carrying rate is 20% of unit cost. ABC has contracted with the supplier of the drill bits to use an order quantity of 200 by doing which they receive a 3% discount on purchase price. Compute the annual total cost (i.e. the Purchase cost + Ordering cost + Holding cost). (Please read the question more than once)
Your company, a large online high school, is planning to implement a new innovative social networking technology for their students.
What is the expected fill rate based on your answer in part a?
Complete the Analytics Exercise: Comparing Companies Using Wall Street Efficiency Measures
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Each year firm, on a random basis, uses about 2,000 of item X, which costs $25 each. Storage costs, which include insurance also cost of capital, amount to $5 per unit of average inventory. Illustrate what is annual cost for ordering item X.
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