What is the annual holding cost and reorder point

Assignment Help Operation Management

Reference no: EM131367021

Ricky Orange’s annual demand is 12,500 units. Ordering cost is $100 per order. Holding cost is estimated at 20% of product cost which is $50 per unit. Assume four weeks/month, lead time L is one week and demand rate is 250 units per week. a) What is the number of orders per year using EOQ to compute the best quantity to order? b) What is the annual holding cost? c) What is the reorder point?

Reference no: EM131367021

Questions Cloud

Sexual harassment in the workplace out of constitutional law : When it comes to sexual harassment in the workplace out of constitutional law, contracts, antitrust law, securities regulations, employment law, environmental law, crimes and torts which three areas of law applies to this area and why?

How many high-fare customers are turned away : Inn at Penn has 200 rooms. For regular-fare customers, rooms are priced at $300 per night while the rooms are priced at $600 per night for the high-paying customers who generally arrive at the last minute. Suppose that Inn at Penn operates with the p..

The weekly demand for road salt in a small community : During the winter season, the weekly demand for road salt in a small community is Normally distributed with a mean of 800 pounds and a standard deviation of 200 pounds. It takes one week lead time to get more salt delivered. To achieve a 99% service ..

What other producrs might lend themselves to sampling : Food manufactures often set up tables in supermarkets and offer free samples to shoppers, along with coupons for the promoted items. sometimes restaurants offer fre coffee or drink refills. What other producrs might lend themselves to sampling? Make ..

What is the annual holding cost and reorder point : Ricky Orange’s annual demand is 12,500 units. Ordering cost is $100 per order. Holding cost is estimated at 20% of product cost which is $50 per unit. Assume four weeks/month, lead time L is one week and demand rate is 250 units per week. What is the..

Describe a consumer-oriented sales promotion : Describe a Consumer-Oriented Sales Promotion you have experienced. Was it effective? Create a detailed Consumer Oriented Sales Promotion campaign for a company/product of your choosing? Design a contest or sweepstakes marketing campaign?

Write down the core ethical issues of emergency care : Write down the core Ethical issues of Emergency Care? Analyze initiatives to overcome poor coordination in retail supply chains? As a consumer would you rather shop at a store features a slae once a month or a store that practices everyday low pricin..

Characteristics in relation to being public health hazard : It is important for public health professionals to understand zoonotic and vector-borne diseases because they impact both humans and animals. Additionally, it is possible for diseases to be passed from animals to humans. Understanding their epidemiol..

Identify the organizations primary product or service : You have been hired as an outside consultant to help Tyson foods to strengthen employee development. identify the organizations primary product or service. what is the current focus? what are the organizations overarching goals? what are the organiza..

User Account

All Pages