Calculate the annual cost of holding inventory for the rail

Assignment Help Operation Management
Reference no: EM131153554

Value Electronics has a yearly demand of 100,000 units for their tablet. The order processing cost per order is $2,000, and inventory holding cost is $100/item/year. They have opted for the reorder point system, and it has two options for transportation: by truck and by rail. Truck transportation takes 1 week, while rail transportation takes 2 weeks of lead time. Truck transportation costs $2 per tablet, while by rail the transportation cost is $1 per tablet. It is the policy of Value Electronics to hold enough inventories to cover demand for twice the lead time.

Calculate the annual cost of holding inventory for the rail scenario.

Reference no: EM131153554

Questions Cloud

Challenges of entrepreneurial work : Innovation and creativity are critical in overcoming the challenges of entrepreneurial work - Reflect on the theoretical linkages between these concepts.
Describe the formation process of cross-border mergers : Q1) Describe the formation process of cross-border mergers, acquisitions, and international joint ventures. What are the major differences? Explain your answer and please conduct research to support your findings, citing at least one scholarly res..
Name an international strategy : Question: Name an international strategy which involves serving markets within a particular country?
Compare and contrast dna and rna : Compare and contrast DNA and RNA. Discuss why humans did not evolve with one central repository of DNA, but rather it is replicated throughout the body?
Calculate the annual cost of holding inventory for the rail : Value Electronics has a yearly demand of 100,000 units for their tablet. The order processing cost per order is $2,000, and inventory holding cost is $100/item/year. They have opted for the reorder point system, and it has two options for transportat..
How the immediacy of communication can impact the spread : Do you follow people on Twitter? Consider how the immediacy of communication can impact the spread of information about world events-both good and bad?
Compute the dollar amount of change : Compute the dollar amount of change and the percentage change in inventories between 2010 and 2011. - Compute inventory as a percentage of current assets for 2011.
The double helix : Describe the role of double helix in complimentary base pairing in DNA replication. What does it mean when we say that the two strands of DNA in the double helix are antiparallel?
Calculate the total annual cost for the truck scenario : Value Electronics has a yearly demand of 100,000 units for their tablet. The order processing cost per order is $2,000, and inventory holding cost is $100/item/year. They have opted for the reorder point system, and it has two options for transportat..

Reviews

Write a Review

Operation Management Questions & Answers

  What are the parameters and the potential implications

What are your thoughts on this? What are the parameters and the potential implications for failure to adhere to those parameters?

  What are the steps required to develop a social media plan

How can a bank or other financial institution help American businesses to compete in the global marketplace? How can social media help companies generate new product ideas and recruit employees? What are the steps required to develop a social media p..

  Prepare a cause-and-effect diagram for the outcome

Prepare a cause-and-effect diagram for the outcome

  How national culture affect strategy

How does national culture affect strategy? To what extent do different approaches to strategy, different ways of thinking about strategy, reflect different underlying cultural assumptions?

  Triple constraint-cost/revenue-schedule and scope-quality

Form a two-person groups and select a topic on which you are “experts” (such as choosing a class) and you are challenged to develop a consensus knowledge base and inference rules. What model did you use to arrive at your decision?

  Illustrate what is capacity at stamping

"Metal window boxes are manufactured in 2 process steps: stamping and assembly. Each window box is made of 3 pieces: base A and 2 sides Bs. Illustrate what's capacity at stamping.

  About logistics and transportation

As consumer when we think about Logistics and Transportation, are they the Same or different especially when we think about supply chain?

  Organizational psychology

What is organizational psychology? How is it different from general psychology?

  Calculate the line of best fit using the least-squares

Using the following data set, calculate the line of best fit using the least-squares (regression/correlation analysis) method. The evaluated points for each organizational job (X) and the actual pay rate (Y) from survey data are shown below.

  What are inimitable facets of verticalnets business plan

For this assignment, following APA style, answer as comprehensively as possible the questions after each case summary. Please refer to VerticalNet: The New Face of B2B Case Study on page 285 and answer the following questions: What value does Vertica..

  Which of the steps in the control process described

Which of the steps in the control process described in our text is the most challenging? Why? What can be done at a lower to middle management level to alleviate or reduce those steps

  Find out the value of the policy variable

Twelve containers are authorized for the part. Recall which p-bar is the average processing time per container not per individual part. Find out the value of the policy variable, α, which expresses the amount of implied safety stock in the system.

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