What is the total inventory cost

Assignment Help Operation Management
Reference no: EM13843818

A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. What is the approximate economic order quantity? What is the total inventory cost?

Section B: This section carries 10 points

Describe the reasons to carry inventory?

Reference no: EM13843818

Questions Cloud

Bronze machines and injection molding machine : Always Rain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently two production lines are in place for making bronze and plastic sprinklers. Three bronze machines and only one injection molding machine ar..
Project risk and procurement management : Pharmacist working as Supply Planning Manager in an international pharmaceutical company - Topic and report the most risky thing you have ever done
Find the initial speed of the ball : Find the initial speed of the ball
Name three major categories of allowances in time study : Explain the purpose of allowances in time study? Name three major categories of allowances in time study? Provide the minimum values for the two constant allowances in time study?
What is the total inventory cost : A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. What is the approximate economic order quantity? What is the total inventory cost? Describe the reasons to carry inventory?
Continuous review system and periodic review system : A certain type of computer costs $1,000, and the annual holding cost is 25% of the value of the item. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity? What is the total inventory co..
Production system-products requires unit of raw material : Each of finished products requires a unit of raw material. If raw material enters the system at a rate of 10 units per hour, what is the utilization of machine B. Note that, machine B does not process raw material, but it processes the work-in-proces..
Organization restructuring : For almost the past two years we have seen many organizations "shed" workers; some as a last resort, some as a first step for sustaining economic viability. Reviewing our material, what are your views about such efforts?
Do recreation and health screening structured : How is your organization (could be work, volunteer, team, etc. related) (Company is a Senior Program that feed, do recreation, health screening, anything dealing with Senior Citizens) structured? What do you see as the rationale for this structural c..

Reviews

Write a Review

Operation Management Questions & Answers

  Result of subdividing a project

1. Which of the following would be the result of subdividing a project? 2. At the onset, a project originates as which of the following?

  Two alternatives are being considered for a customers order

Two alternatives are being considered for a customer's order whose anticipated volume is not yet know. If the firm produces in-house, the fixed cost is $340,000 and variable cost is $2.90 per unit. If the firm chooses to outsource, it will incur a fi..

  Identification of changes which need to be made

Identification of changes which need to be made also a reason for change. Identification also description of human implications, potential resistance factors,

  Time series analysis with applications

Make sure plots and data are clearly labeled. Provide a Summary and interpretation of the plot results. Load the deere2 data set that is included in the TSA package. (The commands are library('TSA') and then data(deere2). This loads a variable called..

  Whenever hines asked for the additional 20000 the customer

martin rupe worked as the manager of one of jas retail outlets. a customer came in and offered to buy all remaining

  Define how is process performance measurement

how is process performance measurement conducted and managed within the organization. Give a specific example using one or more of the process measurement approaches.

  Explain basic factors that must be in place in order

In operations management, as in life, a balanced approach is often best policy. One of best examples of benefits of this in operations management is lean approach. Explain basic factors that must be in place in order to achieve a balanced lean sys..

  Explain the relationship of strategic objectives information

Explain the relationship of strategic objectives information to PMO outpuits. Explain how executives might be operating today without this information

  What are the perceived benefits and costs

The economic price for the customer is indicated in the exhibit. However, the price must match the costs for the customer. What are the perceived benefits and costs? How can the business improve the perceived value of its product?

  Change managers play and active role in the initiation

Why do you think it is significant that change manager’s play and active role in the initiation, support, and outcomes of organizational change?

  Construct the table of conditional profits

It normally relies on departmental forecast and preregistration records to determine how many copies of a text are needed. Preregistration show 90 operations management students enrolled

  Changing the business model

Using the Week 1 Addendum, identify their resources, capabilities, and core competencies.Write one finding of fact, with a fully justified recommendation/justification. Comment on classmates' and instructor's postings.

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