Calculate annual inventory carrying cost-annual product cost

Assignment Help Operation Management

Reference no: EM131273484

A sporting goods company has a distribution center that maintains inventory of fishing rods. The fishing rods have the following demand, lead time, and cost characteristics:

Average demand = 220 units per day, with a standard deviation of 21 units

Average lead time = 21 days with a standard deviation of 2 days

250 days per year

Unit cost = $24

Desired service level = 95%

Ordering cost = $64

Inventory carrying cost = 25%

a. What is the standard deviation of demand during lead time?

b. How much safety stock should be carried?

c. Calculate EOQ.

d. Calculate annual ordering cost.

e. Calculate annual inventory carrying cost.

f. Calculate annual product cost.

g. Calculate total cost.

h. Calculate average cycle stock.

i. Calculate average inventory.

Reference no: EM131273484

Questions Cloud

Part two-leading motivation : During the course of production older line staff and machine workers began to see the speed and accuracy for which the 3D printers made its product.

Write summary and analysis of the key points in the article : Write a summary and analysis of the key points in the article and a discussion on how the article supports or contradicts the concepts as presented in the textbook.

Simulate the steady state and transient operation : Marine Engineering Simulation & Modelling - Give a short description of the model characteristics and the differences from the MVEM (discussed in Part A). Discuss the applications and the limitations of the model.

Motivation level at the salvation army : What are some of the challenges in maintaining the motivation level at the salvation army?

Calculate annual inventory carrying cost-annual product cost : A sporting goods company has a distribution center that maintains inventory of fishing rods. The fishing rods have the following demand, lead time, and cost characteristics: What is the standard deviation of demand during lead time? How much safety s..

How future research could move the topic forward : Discuss the meaning or implication of the results of the study that the article covers. This should be one to two paragraphs. This is where you offer your opinion on the article. Discuss any flaws with the article, how you think it could have been..

Learning objectives for a specific psychomotor skill : Using Dave's Levels of Psychomotor Domain, develop 3 learning objectives for a specific psychomotor skill for a health professional to learn.

Hair spray and makeup pollution : Hair spray and makeup pollution- Please go straight to the point, don't do introduction and conclusion. This is a part of a big research I just need the solution part in two full pages.

Creating a meeting agenda : Your supervisor has asked you to develop the agenda for an upcoming meeting on (make up your own meeting topic). For this assignment you will:

User Account

All Pages