Solution-How many barrels should it order in one shipment

How many barrels should it order in one shipment

Assignment Help Supply Chain Management

Reference no: EM131881415

This is a SUPPLY CHAIN MANAGEMENT QUESTION! Please see the problem set out below, and answer A & B. Please show all your steps in arriving at the answer. Clearly state the definitions of terms used, and also state AND explain any formulas used.

A. The BOYLEN OIL COMPANY sells empty barrels. The forecasted annual demand for its barrels is 1600. The order processing cost is $10, and inventory holding cost is $25 per item per year. How many barrels should it order in one shipment?

B. The BOYLEN OIL COMPANY has set its order quantity at 35. However, to allow for uncertainties in the market, it wants to hold 2 weeks of safety stock. What should its reorder point be, if the delivery time is 1 week?

Reference no: EM131881415

Questions Cloud

Number of suppliers for a critical subassembly : Your manager has decided to reduce the number of suppliers for a critical subassembly from three to two. She has asked you to review the three

Calculate the net cash flows for each year : Calculate the net cash flows for each year. Based on these cash flows, what are the project’s NPV, IRR, and payback?

Difference between thick-big data according to tricia wang : What is the difference between thick and big data according to Tricia Wang?

Record the payment of income tax during the year : Provide the journal entry made by Sara Lee to record the payment of income tax during the year 2009. Provide the journal entry(ies) made by Sara Lee

How many barrels should it order in one shipment : The order processing cost is $10, and inventory holding cost is $25 per item per year. How many barrels should it order in one shipment?

What is the intrinsic value of deployment specialists stock : If the required return for Deployment Specialists is 8.0%, what is the intrinsic value of Deployment Specialists stock?

What is the weighted average contribution margin : Carlos Company sells 3 types of umbrellas. Umbrella A sells for $20 and has variable cost of $9.00 per unit. Umbrella B sells for $17.00.

Emphasis on global communications : Reaction of global supply chains to event with emphasis on global communications, IT challenges in data collection and analysis, and IT solutions supporting

Issues in multicultural work forces and managing workforce : Encouraging a culture of Innovation and Change in Asian companies - Issues in multicultural work forces and managing workforce diversity

User Account

All Pages

How many barrels should it order in one shipment

Reference no: EM131881415

Reference no: EM131881415

Questions Cloud

Reviews

Write a Review

Supply Chain Management Questions & Answers

Supply chain network design for cwc

Criteria when making new location decisions

Draw the project network

Compare and contrast economic - market, and relevancy

Brushing up on inventory control

Supply chain strategy

What is the economic order quantity for fans in units

What factors reduce the capacity of the organization

What is the total annual cost

Supply chain management questions

Explain the supply chain management concept

How warehouses can add value in the supply chain

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT