What is optimal number of days in between any two orders

Assignment Help Financial Management
Reference no: EM131366890

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation.? Thomas's fastest-moving inventory item has a demand of 6,100 units per year. The cost of each unit is $102?, and the inventory carrying cost is $8 per unit per year. The average ordering cost is ?$31 per order. It takes about 5 days for an order to? arrive, and the demand for 1 week is 122 units.? (This is a corporate? operation, and there are 25 working days per? year).

A) What is the EOQ?

B) What is the average inventory if the EOQ is used?

C) What is the optimal number of orders per year?

D) What is the optimal number of days in between any two orders?

E) What is the annual cost of ordering and holding inventory?

F) What is the total annual inventory cost, including cost of the 6,100 units?

Reference no: EM131366890

Questions Cloud

What is the optimum production quantity : Arthur Meiners is the production manager of? Wheel-Rite, a small producer of metal parts.? Wheel-Rite supplies? Cal-Tex, a larger assembly? company, with 11,200 wheel bearings each year. What is the optimum production quantity? How many production ru..
About management decisions and control in global environment : What’s Different About Management Decisions and Control in A Global Environment? What types of political risk would a company entering Cuba face? Provide an example. What is severance pay? List 5 guidelines for designing effective severance plans. Wh..
What are family-friendly benefits : What are family-friendly (work-life) benefits? Name and define 4 types of these benefits. Describe what a Scanlon Plan is and its 5 major elements. Define a Combination Incentive Plan for salespeople. What are the pros and cons of these incentive pla..
Differences between two perspectives in supply chain design : As suggested in the lecture pages for this week, there is a significant difference in measuring the performance of a supply chain from the perspective of the customer and from the perspective of the shipper. Describe the differences between these two..
What is optimal number of days in between any two orders : Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation.? Thomas's fastest-moving inventory item has a demand of 6,100 units per year. What is the average inventory if the EO..
What specific violations were alleged in the case : Commonwealth of Kentucky v. Jenssen Pharmaceuticals discusses various allegations of violations of FDA labeling and marketing laws against Jenssen Pharmaceuticals. What specific violations were alleged in the case, and who are these laws designed to ..
Behavioral finance deals with : Illusory superiority bias explains: Why more than half of drivers believe they are better than average. Why people love the color blue more often than the color yellow. Behavioral finance deals with: When you assign a lower than correct probability t..
Discuss relationships in various multinational strategies : Discuss relationships between various multinational strategies and types of organizational structure. Inspirational and relational leadership perspective. How are business ethics different from personal ethics? prepare the summary section for your mo..
Major human resource management responsibilities : Given Walmart's issues with employee's, address the following questions that pertain to the major human resource management responsibilities and to change management. What one major organizational subsystem needs to be changed in the organization? Ju..

Reviews

Write a Review

Financial Management Questions & Answers

  What are employee stock options

What are employee stock options? How do they work? Describe the use of stock options in compensation plans, and comment on how the granting of options attempts to influence managerial behavior.

  Planning to save for retirement

You are planning to save for retirement over the next 25 years. To do this, you will invest $790 a month in a stock account and $390 a month in a bond account. The return of the stock account is expected to be 9.9 percent, and the bond account will p..

  Calculate new average collection period-accounts receivable

Fitzgerald Company has credit terms of 2/15, n60. The historical payment patterns of its customers are as follows: Annual sales are $730,000. Assume there are 365 days in a year. Calculate the new average collection period (ACP) and accounts receivab..

  What is your dollar profit if platinum sells

The contract size for platinum futures is 50 troy ounces. Suppose you need 500 troy ounces of platinum and the current futures price is $1,265 per ounce. How many contracts do you need to purchase? How much will you pay for your platinum? What is you..

  In developing your export business plan

Select a product of which you will export to a foreign country. After your product is chosen, decide on a foreign country to which you will export. In developing your Export Business Plan,

  A fallen angel is a bond that has moved from

A "fallen angel" is a bond that has moved from?

  Competition in the gas industry is expanding rapidly

The Turner Company owns and operates the town's only gas station. The dividend just paid (i.e., D0) was $2, but since competition in the gas industry is expanding rapidly, you expect the dividend to remain constant (NOT THE DIVIDEND GROWTH RATE) for ..

  Shares of preferred stock-common stock outstanding

WhackAmOle has 2 million shares of common stock outstanding, 1.5 million shares of preferred stock outstanding, and 50,000 bonds. Assume the common shares are selling for $65 per share, the preferred shares are selling for $54.00 per share, and the b..

  What is the yield-to-maturity of the bonds

Facade Securities has an issue of $1,000 par value bonds with 18 years remaining to maturity. The bonds pay 7.7% interest on a semiannual basis. The current market price of the bonds is $1,175. What is the yield-to-maturity of the bonds?

  Expected return standard deviation stock fund

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 5.0%. Expected Return Standard Deviat..

  Per year simple interest

Your aunt lends you $5000 for 7 years at 9% per year simple interest; then the entire proceeds are invested for 13 years at 8% per year, compounded annually. How much money will your aunt have at the end of the entire 20-year period?

  Estimate minimum rate of return on equity that is acceptable

Your firm has been approached to become an equity participant in a leveraged leasing deal. You need to estimate the minimum rate of return on equity that is acceptable.

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