Explain what is the reorder point, Operation Management

Joe Henry's machine shop uses 2500 brackets during the course of a year. these brackets are purchased from a supplier 90 miles away. The following information is known about the brackets:

Annual Demand: 2500

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 the above information, what would be the economic order quantity (EOQ)?

b.) Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost?

c.) Given the EOQ, how many orders would be made each year? What would be the annual order cost?

d.) Given the EOQ, what is the total annual cost of managing the inventory?

e.) What is the time between orders?

f.) What is the reorder point (ROP)

Posted Date: 2/11/2014 3:54:21 AM | Location : United States







Related Discussions:- Explain what is the reorder point, Assignment Help, Ask Question on Explain what is the reorder point, Get Answer, Expert's Help, Explain what is the reorder point Discussions

Write discussion on Explain what is the reorder point
Your posts are moderated
Related Questions
Define what is span of management. Span of Management termed as the number of subordinates working under a manager.

Stephanie the CEO of XYZ Inc., is trying to increase the level of effort and therefore performance in her company. Based on expectancy theory on motivation she knows that effort do

How customers were affected the BP oil spill disaster in the gulf

Information required for Process Planning Quantity of work to be along with product specifications. Availability of equipment tools and personnel (giving dates e

Explain what Logos, Ethos and Pathos are and their relevance to being understood. Also discuss their preferred order of use. Construct an example following this model. Grading r

1. What are the implications of not allocating material in a shop order after availability checking? 2. Provide some examples of static and dynamic scheduling problems.

What competencies do you feel are required of the HRM professional to become the strategic business partner and assist in leading an organization? Be sure to include scholarly s

On the Direct Marketing Association website, what is interesting, how can companies use the website, what information is surprising and why?

HR use of social media it is for a term paper and i am just collecting some data and ideas.