Reference no: EM1376574
Q. Joe Henry's machine shop uses 2,500 brackets during course of a year. these brackets are purchased from a supplier 90 miles away. Subsequent information is known about brackets.
Annual demand 2,500
holding cost per bracket per year $1.50
order cost per order $18.75
Lead time 2 days
working days per year 250
a. Given above information, illustrate what would be economic order quantity (EOQ)?
b. Given EOQ, illustrate what would be average inventory? Illustrate what would be annual inventory hold cost?
c. Given EOQ, elucidate how many orders would be made each year? Illustrate what would be annual order cost?
d. Given EOQ, illustrate what is total annual inventory cost?
e. Illustrate what is time between orders?
f. Illustrate what is reorder point (ROP)?