What is the total annual inventory cost

Assignment Help Management Theories
Reference no: EM131893286

Question: Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5,750 units per year. The cost of each unit is $104 and the inventory carrying cost is $88 per unit per year. The average ordering cost is ?$31 per order. It takes about 55 days for an order to? arrive, and the demand for 1 week is 115 units. (This is a corporate? operation, and there are 250 working days per? year).

a) What is the EOQ? units (round your response to two decimal places).

b) What is the average inventory if the EOQ is used? units?(round your response to two decimal places)

211/2 is the wrong answer

c) what is the optimal number of order per year

d) what is the optimal number of days between any two order/

e) what is the annual cost of ordering and holding inventory

f) what is the total annual inventory cost, including the cost of the 5750 units

Reference no: EM131893286

Questions Cloud

Produce specialized aluminum products for its customers : Automated Manufacturers uses high-tech equipment to produce specialized aluminum products for its customers.
Produce a topic to sentence outline and thesis statement : Produce a topic to sentence outline and thesis statement. The topic to sentence outline must also be accompanied by a short (no more than 4 lines).
Cause the futures market price at maturity : Explain the key determinants of futures prices and explain the factors that may cause the futures market price at maturity,
Relationship between issuing company and bondholders is : The legal agreement (contract) that governs the relationship between an issuing company and bondholders is a(n)?
What is the total annual inventory cost : Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation.
Estimate of carpetto cost of common equity : If you have equal confidence in the inputs used for the three approaches, what is your estimate of Carpetto's cost of common equity?
Wacc for the last dollar raised to complete expansion : What is the WACC for the last dollar raised to complete the expansion?
Discuss the accounting ethical theories : Thinking of all the accounting ethical theories, codes of conduct, professional, and personal experience, I would like you to draft a 3 paragraph personal.
Identify the legal ownership structure of the business : Identify the legal ownership structure of the business. Explain why you have classified the business in this particular structure.

Reviews

Write a Review

Management Theories Questions & Answers

  Discuss about the interactive voice-based applications

As the chief executive officer of a Silicon Valley software company, you become aware that your chief competitor is working on a new computer program.

  Should sunrise be held liable for copyright infringement

Fashion Victim, Inc., sells a T-shirt called Skeleton Woopee with a fanciful design depicting skeletons engaging in sexual activity in seven different position.

  What actions if any should you take

One of your analysts told you that the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. What actions, if any, should you take?

  How she intends to proceed with her empirical work

Brenda is carrying out empirical work as part of a postgraduate thesis on attitudes to stress in the workplace. She is currently a full-time student.

  How can prevent the destruction of electronic evidence

Instead of charging Yuen with securities fraud, he was charged in a civil case and with obstruction of justice. What should have been done to prevent.

  Has the officer committed murder

A police officer orders an unarmed person running away from a burglary to stop; the suspect keeps running and is shot and killed by the officer.

  Explain the decision-making process

discuss and reference concepts taken from the assigned textbook reading and relevant research. Also explain the decision-making process you experienced as a consumer when choosing this product or service.

  Literature review for the business research proposal

Devlope a comprehensive literature review for the business research proposal -  It is a special form of information gathering where you present the known body of knowledge relevant to the issue(s) or problem(s) you are addressing

  What is the meaning of a derived demand

The demand for labor is said to be a "derived" demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor

  Prepares a financial statement for excel company

Dave, an accountant, prepares a financial statement for Excel Company, a client, knowing that Excel will use the statement to obtain a loan from First National Bank.

  Should unilever penetrate southeast asia further

Purpose: Unilever is featured in the opening chapter case as a firm that engages in excellent strategic planning. Unilever is the world's third-largest.

  Operational and dynamic capabilities

Analyse the ways in which your firm delivers its operational and dynamic capabilities and discuss how a formal project management approach supports, or could support, these capabilities.

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