Determine the optimal order size and total inventory cost, Operation Management

Case Study:

The ePoint Store stocks paint in its warehouse and sells it online on its Internet Web site. The store stocks several brands of paint; however, its biggest seller is Sharman-Wilson Iron coat paint. The Company wants to determine the following:

1. Optimal order size and total inventory cost for Iron coat paint given an estimated annual demand of 10,000 gallons of paint, an annual carrying cost of € 0.75 per gallon, and an ordering cost of €150 per day.

2. The number of orders that will be made annually and the time between orders (Order cycle).

Posted Date: 2/23/2013 2:35:19 AM | Location : United States







Related Discussions:- Determine the optimal order size and total inventory cost, Assignment Help, Ask Question on Determine the optimal order size and total inventory cost, Get Answer, Expert's Help, Determine the optimal order size and total inventory cost Discussions

Write discussion on Determine the optimal order size and total inventory cost
Your posts are moderated
Related Questions
Discuss the challenges and opportunities facing new types of payers and IDSs due to the ACA.

Fully describe relationship between planning and organizing. Explain how the controlling function does or does not relate significantly to the planning function.

Now let's continue our discussion about the financial aspects of owning your own business that are part of, by considering the idea of "ratio analysis". In considering "financial r

The Bluegrass Distillery produces custom-blended whiskey. A particular blend consists of rye and bourbon whiskey. The company has received an order for a minimum of 400 gallons o

Leaders and Their Leadership Styles This week you learned about a number of different leadership theories. Choose two of today's leaders listed below and research on their leade

In what ways might the divisionalized forms of most airlines lend themselves to the requirements of alliance membership? In what ways might they be compatible with the organization

Why do you think it's difficult to understand some of the basic cost terms in this chapter? Why aren't many technical people interested in cost-related subjects? What could be done

An industrial machine tools manufacturer supplies replacement parts from its inventory. For a particular part, the annual demand is expected to be 750 units. Machine setup costs ar

Explain the concepts of empowerment, self-managed teams, and cross-functional teams, and develop an essay that argues for their inclusion in either a tall or flat organizational st

Production Control Meaning and Definition Production control involves implementation of production plans or schedules by coordinating different activities. It seeks to