Economic order quantity - and reorder pointa distributor of

Assignment Help Business Management
Reference no: EM13368923

Economic order quantity - and reorder point

A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries. The following data refer to a specific refrigerator in its product line:

- Cost to place an order - $100
- Holding cost - 20% of product cost per year
- Cost of refrigerator - $500 each
- Annual demand - 500 refrigerators
- Standard deviation during lead time - 10 refrigerators
- Lead time - 7 days

Consider an even daily demand and a 365-day year.

a) What is the economic order quantity?
b) If the distributor wants a 97 percent service probability, what reorder point, R, should be used?

Reference no: EM13368923

Questions Cloud

Operations managementyou have been retained to analyze how : operations managementyou have been retained to analyze how many check-in agents should be used at a check-in counter
Critical thinking rhetorical devices in statementisolate : critical thinking rhetorical devices in statementisolate and discuss the rhetorical devices that appear in the
Literature review assistance in finding relevant academic : literature review assistance in finding relevant academic literaturecould you please help me with tips and suggestions
Virtual organizationdescribe virtual organizations and : virtual organizationdescribe virtual organizations and address the question do networks represent a new hybrid form of
Economic order quantity - and reorder pointa distributor of : economic order quantity - and reorder pointa distributor of large appliances needs to determine the order quantities
Emotional vs factual sustainability planstwo vice : emotional vs. factual sustainability planstwo vice presidents of a large commercial dairy farm have each developed a
Presentation on a management theorychoose a management : presentation on a management theorychoose a management theory and prepare a presentation. the presentation must
Department efficiency review committee taskscommittees can : department efficiency review committee taskscommittees can either hinder or help an organizations quest for optimum
Write a bad news memowrite a bad news memo to employees : write a bad news memowrite a bad news memo to employees explaining that all employees will have to take 6 unpaid

Reviews

Write a Review

Business Management Questions & Answers

  Calculate the annual rate of return on this investment

Illustrate what would be the key considerations in answering yes or no? Would your answer depend on who is making the promise to repay.

  Explain about global organizational leadership

Prepare a words essay that discusses the role of inclusive leadership in strengthening the organizational culture among the diverse global group of employees described above

  Describe a real-world government policy that creates markets

Describe a real-world government policy that creates a market surplus. Be sure to carefully explain the relevant market. In the example you have described what is the government's motivation for intervening

  Express the excel tools used for these tasks

Express the Excel tools used for these tasks also the information required to obtain the rental payment.

  Modigliani and miller model-explantion by example in

modigliani and miller model-explantion by example in excelcan you help me get started with this assignment?describe the

  Need for job evaluation

Objective is to ensure that each and every department in the organization is running in the most cost effective efficient manner. Running efficiently is no more criteria for its existence. It must prove financially justifiable also

  Make a table showing the net marginal revenue

Just Bikes, Inc., sells tricycles, in partially-assembled and fully assembled forms.  Make a table showing the net marginal revenue product derived from assembly worker employment.

  Generic organization manufacturing plant

Final Paper Emphasis of the Final Paper in Week One each student will select a generic organization manufacturing plant, hospital and so on. Endure in your role as a hired consultant for this organization

  The bank didn''t immediately sell the bonds however instead

The bank didn't immediately sell the bonds however instead requested $5,000 from Peterson.

  Explain what does silence during communication indicate

Explain What does silence during communication indicate to you personally and How is your culture's use of silence connected to Hall's cultural patterns of low and high context

  An effective drtv spot

What elements go into an effective DRTV Spot?

  Write a rebuttal to the article using valid arguments

Write a rebuttal to the article using valid arguments and supporting data. In the rebuttal, offer an analysis in which you do the Analyze the reliability, credibility, and validity of the data used by the author.

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