User Account

All Pages

What will reorder level and total annual cost of inventory

Assignment Help Business Management
Reference no: EM131344731

The annual demand for a product is 3,600 units with an average of 12 - units per day. The lead-time is 10 days. The ordering cost per order is Rs.10 and the annual carrying cost is 25% of the value of the inventory. The price of the product per unit is Rs. 3.00.

(I) What will be the EOQ?

(II) Find the purchase cycle time?

(III) Find the total inventory cost per year?

(IV) If the safety stock of 100-units is considered necessary, what will be the reorder level and the total annual cost of inventory which will be relevant to inventory decision?

Reference no: EM131344731

Questions Cloud

Describe both verbal and nonverbal management communication : Explore the role of international and intercultural interpersonal communications in today's global businesses. Describe both verbal and nonverbal management communication.
How frequently should production run be made : The cost of holding a bearing in stock for one year is Rs.2 and the set-up cost of a production run is Rs.1,800. How frequently should production run be made?
Find the most economic batch quantity of a product : The ordering cost is Rs. 200 per batch and the cost of holding one item in inventory is Rs.0.81 per day. How will the batch quantity vary if the production rate is infinite?
How the businesses could deal with the risk exposure : Be sure to explain your risk choices as well as how the businesses could deal with the risk exposure. The matrix and table can be developed in Excel and copy/pasted to your Word document.
What will reorder level and total annual cost of inventory : If the safety stock of 100-units is considered necessary, what will be the reorder level and the total annual cost of inventory which will be relevant to inventory decision?
Why are system safety principles not used by all safety : Why are system safety principles not used by all safety professionals? Suggest some ways to overcome the obstacles to wider adoption of system safety. Your response must be at least 75 words in length
What is the mps and the multiplier : According to the classicals, deviations from full employment are due to adjustments from shifts in the labor supply and demand curves. These shifts were discussed in chapters 8 and 9. Why do Keynesians argue this point - Determine the slope of thi..
How governments can use fiscal policy to redistribute income : Explain how governments can use fiscal policy to redistribute income. With the help of diagrams distinguish between demand-pull and cost-push inflation. Explain which fiscal policies would be appropriate to deal with these two types of inflation
Safety policy statement for current organization : Compose a safety policy statement for your current organization (or an organization for which you previously worked), following the guidelines in the course textbook. Be certain it is specific to the organization and not just a series of generic s..

Reviews

Write a Review

Business Management Questions & Answers

  Unregulated cortisol and stress hormone

What term is used in this article to describe the regulatory axis of the reproductive system? What is the principle regulatory hormone for this axis?

  What is the purpose of the document to be written

What is the purpose of the document to be written? What result do you hope to achieve by writing it? Who are your readers and what do they want from your document?

  What ways does utc''s corporate-level strategy

In what ways does UTC's corporate-level strategy of unrelated diversification create value?

  Analyze how the company can manage these risks

Explain what risks the company could face in entering the market in Mexico and Explain how these risks might be different than those risks faced in staying in just the American market.

  Create class-responsibility-collaboration cards

Create Class-Responsibility-Collaboration (CRC) cards and a class diagram based on the functional models through the use of graphical tools in Microsoft Word or Visio, or an open source alternative such as Dia.

  Profit per unit for single price monopolist

a. Given the above information, what is this monopolist's profit maximizing price and output if it charges a single price? b. Given the above information, calculate this single price monopolist's profit. c. At the profit maximizing quantity, what is ..

  Computing cash flows in net initial investment

To address this, calculate: The cash flows in year 0, the net initial investment (NINV). The operating cash flows (OCF) in years 1 - 3.

  What is the danger from an ethical perspective of having a c

What is the danger from an ethical perspective of having a CPA firm that conducts the audit of a public company also engaged in consulting with the company on the installation of a new financial information system?

  Develop an advancedspace capsule airbag landing attenuation

Irvin Aerospace of Santa Ana, CA, was awarded a 5-year contract to develop an advancedspace capsule airbag landing attenuation system for NASA's Langley Research Center. Thecompany's computer system uses fluid structure interaction modeling to tes..

  Management strategy action plan

Define the initiatives that are considered relevant to your information management strategy action plan and road map for the new system integration.

  Outcome in a completely labeled graph

Show this outcome in a completely labeled graph. Clearly identify all parts of your graph, including the best price and output for the firm as well as the losses.

  Strategic management of any two organizations

Use the Internet to research articles on strategic management of any TWO organizations of your choice within the same industry (e.g. Coca Cola and Pepsi; Apple and Samsung; Nike and Adidas etc.).

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd