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
Weekly sales of copy paper at Cubicle Suppliers are in the table below. Forecast week 8 with a three-period moving average and with a four-period moving average. Compute MAD for ea

• Discuss the advantages and disadvantages of self-administered interviewing, face-to-face interviewing, and telephone interviewing. • What is necessary for the success of each


These are TWO different short answer discussion questions please answer EACH question in the discussion and list references many motivational theories focus on the motivational qua

The impact Spurlock v. United Airlines (1972) has made to Human Resource Management.

Electronic data interchange relies on   Structured data and standard business documents.

Matthew Yachts, located in Montauk, Long Island, manufactured sailing yachts of all descriptions. The company had begun by building custom-designed yachts for a largely New York-ba

Q. Define the functional department integration in information system. All functional departments are integrated within one holistic information system. Well integrating manufa

In excel how many cells should be used to represent each constraint?

Evaluate the use of statistical analysis in determining project risk and how it might be applied to the human factors of a project