Explain what is the reorder point, Operation Management

Assignment Help:

Joe Henry's machine shop uses 2500 brackets during the course of a year. these brackets are purchased from a supplier 90 miles away. The following information is known about the brackets:

Annual Demand: 2500

Holding Cost per bracket per year: $1.50

Order cost per order: $18.75

Lead Time: 2 days

Working days per year: 250

a.) Given the above information, what would be the economic order quantity (EOQ)?

b.) Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost?

c.) Given the EOQ, how many orders would be made each year? What would be the annual order cost?

d.) Given the EOQ, what is the total annual cost of managing the inventory?

e.) What is the time between orders?

f.) What is the reorder point (ROP)


Related Discussions:- Explain what is the reorder point

Explain research on leader-member exchange, Write a 750-1,000-word paper th...

Write a 750-1,000-word paper that analyzes the two leadership case studies, "Coach Knight: A Will to Win" and "Coach K: A Matter of the Heart." Address the following questions a

Explain process capability index, Determine the Process Capability Index of...

Determine the Process Capability Index of the three processes given below and determine whether the processes are capable or not. Process Mean Variance Lower Specification Limi

Describe what was the labor productivity, Last week employees at Renee's Fa...

Last week employees at Renee's Fashions worked 360 hours to produce 128 garments. Of these, 8 were seconds which were sold at the outlet store for $90 each. The remaining 120 garme

Design a web page for the business function, 1. Design a Web page for the b...

1. Design a Web page for the business function (e.g., ordering, human resources, courier service, inventory listing, etc.). The Web page will have at least the following HTML: a

Explain streaming video, Streaming Video: The Job Market for Graduates DQ V...

Streaming Video: The Job Market for Graduates DQ Video Document Discussion Topic What is your opinion of the interviewing tips given in the video? Which tips of your own would you

Explain it is important to have a vision, It is important to have a vision....

It is important to have a vision. If you were Jerome Byrd, how would you prepare a new vision for your department?

Characteristics of batch production, Characteristics of Batch Production ...

Characteristics of Batch Production Short Runs: Batch production is characterized by short production runs and frequent changes in set ups. Investment : Needs high in

What are two reasons project management is not good, What are two reasons p...

What are two reasons project management is not well done in corporations? Why? What are some specific examples?

Explain law enforcement offices fire fighters, Tha Americans with disabilie...

Tha Americans with disabilies act that employees make reasonable accommodations for individuals with disabilts. How might this requirement affect law enforcement offices fire fight

Write Your Message!

Captcha
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