What is the total annual inventory cost

Assignment Help Operation Management

Reference no: EM131181276

Monthly demand: 5000

Ordering cost: $75/order

Holding cost: $3.5/unit/per month

(Assume 12 months per year)

-Given the data above, the is the optimal order quantity(approximately)

-What is the number of orders per year (approx.)

- What is the total annual inventory cost?

Reference no: EM131181276

Questions Cloud

All customer service staff will find themselves : All customer service staff will find themselves, at some stage, in a situation where customers wish to negotiate. The use of effective negotiating skills is more likely to result in a positive outcome for both the organisation and the customer. Descr..

What is the expected payoff of a small plant : A multifunctional FMCG plans to increase plant capacity and has three alternatives. What is the expected payoff of a small plant. What is the expected payoff of a large plant. Which option should the company choose?

Discuss the underlying issue in the evaluation of a business : Identify and discuss the three underlying issues in the evaluation of a business. Define the term due diligence. How is it applied to the acquisition of an existing venture? Explain how the price/earnings ratio method of valuation works. Give an ex..

Demonstrate an orderly flow of information : This assignment will be worth 20% of your grade. Your paper should be creative and interesting, and should be a minimum 1500 to 2000 words in length. It should be well-organized and demonstrate an orderly flow of information that clearly addresse..

What is the total annual inventory cost : Given the data above, the is the optimal order quantity(approximately) What is the number of orders per year (approx.) What is the total annual inventory cost?

Properties of water contribute to the importance of water : Discuss how the unique physical and chemical properties of water contribute to the importance of water for life on Earth to survive. Discuss how the methods of experimentation and observation have changed throughout the history of science.

Hard power in a business situation : Give an example when it would be best to use soft power, Give an example when it would be best to use hard power in a business situation.

Find an inductive argument that occurs in some online source : Find an inductive argument that occurs in some online source or think of one that you have heard used in your life.

What decision model should be used and optimal decision : The Lubricant is an expensive oil newsletter to which many oil giants subscribe, including Ken Brown. In the last issue, the letter described how the demand for oil products would be extremely high. What decision model should be used? What is the opt..

User Account

All Pages