Explain what is the reorder point, Operation Management

Assignment Help:

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)


Related Discussions:- Explain what is the reorder point

Explain employee types, After an all-night study session the day before the...

After an all-night study session the day before their last final exam, four first-year MBA students decide to stop for some much-needed coffee at the campus Starbucks. They arrive

Explain why is it important to try to fill in the gaps, When interviewing, ...

When interviewing, why is it important to try to fill in the gaps in a candidate's employment history?

After working for 30 years, After working for 30 years, Ramjee Somjee Dutt ...

After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did

Features of production and operation management, Features of Production and...

Features of Production and Operation Management 1. Production management is the process of making decisions. 2. Decisions are made regarding transformation of inputs outputs. 3

Calculate the tracking signal, Sales of music stands at Johnny Ho music sto...

Sales of music stands at Johnny Ho music store in Columbus, Ohio, over the past 10 weeks are shown in the table below. a) Forecast demand for each week, including week 10, using

How to determine the sample standard deviation, Determine the sample standa...

Determine the sample standard deviation(s) for the following data: 7, 9, 2, 0, 1, and 5. s = 2.805 s = 3.266 s = 2.927 s = 3.578

Explain what is the agency problem, What is the agency problem? What steps ...

What is the agency problem? What steps can be taken to solve it? Why is it important for managers and organizations to behave ethically?

Business management and performance measurement process, 1. What does Neely...

1. What does Neely suggest is the first step of the business management process and what affect does he suggest performance measurement has?  2. It has been suggested that inves

Calculation, monthly production time for tep.

monthly production time for tep.

Explain annual compensation cost of a fully-staffed, If a company pays a PA...

If a company pays a PAT member a base wage of $24,000, a PAT incentive bonus of $1 per camera assembled, a $75 quarterly bonus for perfect attendance, and annual fringe benefits of

Write Your Message!

Captcha
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