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
The case of Ellen Moore (A) Living and Working in Korea. Look at this case from the point of view of Andrew Kilpatrick. At this point in time, what would you do if you were Andrew?

Discuss the various views of ethics (e.g. justice view, moral rights, etc.) and why they are important in business.

Assume that as a result of HR planning, a mental hospital identifies a shortage of therapists but a surplus of case workers. Discuss the actions that you would take to address the

Statistical Process Control Quality Planning is a key feature of TQM is the prevention of non-conformance. Two of the pioneers of TQM, Edwards Deming and Joseph Juran, strongl

Suggest some possible strategic initiatives that Sigma could pursue to continue its growth

1. Think of a stereotype associated with an Asian country and one associated with a Latin American country. How can these stereotypes potentially influence decisions related to HR

A bottling facility with an effective capacity of 40,000 crates per day operates with an efficiency of 85%. How many crates will it need to plan for bottling on a day that requires

Garden Variety Flower Shop uses 760 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs a

Watch this Video "Blue jean waste". Describe your reaction to this video and how you would respond if you were a leader of one of the corporations involved. In your journal entry

Q. A textile manufacturer is interested in optimally determined inventories for cutting operations for a children’s product line. The production manager would like to establish th