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 leadership styles by the two coaches, Address the following questio...

Address the following questions and concepts 1) Through your review of Fiedler's contingency model, would you say that the coaches are matched to their situation? Why or why no

Explain subcontractors for a government project want, The government spends...

The government spends a large amount of money each year on contracts. In fact, the federal procurement department spent over $425 billion in the fiscal year 2006 with over $33 mill

Process design, what is process design in operation management

what is process design in operation management

Explain unethical for advertisers to pitch products, Do you feel it's uneth...

Do you feel it's unethical for advertisers to pitch products to patients and students in this fashion? why?

Explain advertising budget, The production manager at company XYZ needs to ...

The production manager at company XYZ needs to prepare forecasts of product demand in order to plan for appropriate production quantities. In the past, demand for the product has b

Variations in volume, Variations in Volume, Variety and Flexibility - Opera...

Variations in Volume, Variety and Flexibility - Operations Function  A classification which is of particular significance for the various issues considered in this course, re

Explain several ways that companies learn from their mistake, What perceptu...

What perceptual problems do managers need to overcome with failures? How can these perceptual problems be minimized? 2. Describe the experiential learning process that companies, m

Explain what is the difference between idealism and realism, Provide a "rea...

Provide a "real world" example of moral philosophy. What is the difference between idealism and realism? Support your definitions with practical examples. How does moral philoso

Compute the cpk for this machine, 1) C-Spec, Inc., is attempting to determi...

1) C-Spec, Inc., is attempting to determine whether an existing machine is capable of milling an engine part that has a key specification of 4+6 .003 inches. After a trial run o

Health Care for Women Veterens, NOTE: NOTE: below are the 2 textbooks used...

NOTE: NOTE: below are the 2 textbooks used in the course and it is important to use quantitative analysis techniques covered in both texts. PMBA 6312 Quantitative Methods/Research

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