What is the annual cost for ordering and holding inventory

Assignment Help Operation Management
Reference no: EM131466278

ABC Co. Can manufactures a subcomponent at the rate of 700 per day when required. Its annual demand for this item is 80000 units. Assume 250 working days per year. Holding cost is 20$ per unit year. Set-up cost is 1000 per set up Find:

1) What percentage of time during the year will this item be produced.

2) What is the annual cost for ordering and holding inventory.

Reference no: EM131466278

Questions Cloud

What is the annual cost of fixing plus scrapping : In Pullman, one of the largest engineering firms is Schweitzer Engineering Labs (SEL). what is the annual cost of fixing plus scrapping
The different strategies to reduce intergroup conflict found : Discuss in detail the concepts that lead to the intergroup conflict, such as stereotypes, prejudice, and discrimination.
Find the service level and weekly order quantity : A news-stand buys a weekly magazine from a publisher once every week at $3 per copy. Find The service level-Weekly order quantity.
Role of total rewards in motivating staff performance : The paper length should be a minimum of 10-12 pages and comply with all formatting and APA style standards. Some suggested topics can include.
What is the annual cost for ordering and holding inventory : ABC Co. Can manufactures a subcomponent at the rate of 700 per day when required. What is the annual cost for ordering and holding inventory.
Watch and reflect on an episode of the brain series : watch and reflect on an episode of "The Brain Series" hosted by Charlie Rose.
Choice of shoe type : Suppose you are opening a shoe manufacturing firm that is going to begin selling shoes (your choice of shoe type: tennis shoes, men's or women's dress shoes
Economic production order quantity : ABC Co. Can manufactures a subcomponent at the rate of 700 per day when required. Economic production order quantity
What styles of negotiation were display : Was this a distributive or integrative type of negotiation? What styles of negotiation were display?

Reviews

Write a Review

Operation Management Questions & Answers

  Relationship between the current event and the past event

Select at least five major milestones or benchmark events and their impact on the healthcare system. Choose two of the five milestones or events that you have identified and relate them to current healthcare events, issues, or reform movements. Ident..

  Foster temporary loyalty

What steps could you take at your company to foster “temporary loyalty” from the independent gaming programmers you frequently hire for short duration (one to six months)?

  Average weekly hours per worker in explaining variation

The role of average weekly hours per worker in explaining variation in total hours worked per year is about as important as employment in determining total hours. The role of average yearly hours per worker in explaining variation in total hours work..

  Difference between the freeliance and business models

Discuss in detail and explain the difference between the freeliance and business models. What is the nature of the American Revolution ? Describe the importance of mentorship and succession planning to the long-term success of the health organization..

  Determine the delivery schedule

SA supply serves the greater Houston area and has to determine the delivery schedule for tomorrow. Given the demand information in the graph and truck capacity of 30 units, Use the sweep heuristic starting from Depot going counter clock wise and find..

  Main types of forecasting techniques

List 3 main types of forecasting techniques and then by choosing ONE forecasting method describe in 3-4 sentences how the method is used, data needed to run it and some example of real world applications for the method.

  Question regarding supply chain design and implementation

This assignment will help you develop an understanding about the life cycle of supply chains including the models that are aligned with it and the cost it bears. In addition, you will develop an awareness of the elements of the supply chain that s..

  What is the annual cost for ordering item

Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $4 per unit ..

  Level of competitiveness in the luxury goods industry

Use the five(5) forces framework to determine the level of competitiveness in the luxury goods industry. Speculate on the likely profit potential of the luxury goods industry, given the opportunities(O) and threats(T) underlying the competitive force..

  Information systems for healthcare management

Briefly describe one method or model presented in Chapter 13 (Information Systems for Healthcare Management, Glandon, Smaltz, Slovensky) that could be used to help in the selection process of an HIS. Why did you choose this one?

  What costs would be involved in transitioning to such system

Describe how that approach might work at the restaurant and why that could be expected to reduce waiting times. What costs would be involved in transitioning to such a system?

  Illustrate what conditions would favour the use of each

Elucidate how could you distinguish between vendors, a partner also a strategic alliance. Illustrate what conditions would favour the use of each.

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