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

Operation Management, what are the factors that affect productivity

what are the factors that affect productivity

Innovative ideas for management position, These are questions I were asked,...

These are questions I were asked, i'm assuming you could understand the question based on the way I worded the answers. It's suppose to be a paragraph but i'm not exactly sure what

Design a operations management system, The purpose of operations management...

The purpose of operations management is to make the best use of productive resources. It entails the design and control of all the systems for the productive use of various raw mat

When is the ordering cost decreased, When is the ordering cost decreased? ...

When is the ordering cost decreased? Ordering cost falls while the size of order increases. It is because when the size of order raises for the similar quantity of inventory pu

Explain five key economic variables, Identify five key economic variables t...

Identify five key economic variables that could represent major opportunities or threats to a bank in your town or city. Identify which that you believe to be most important, and d

Process Layout, Assignment of Process layout of any company

Assignment of Process layout of any company

General questions, wanna know how long it takes to receive a paper

wanna know how long it takes to receive a paper

Describe fertilizer that promised a 50% increase in yield, Felicien grows m...

Felicien grows mirlitons (that's Cajun for Chayote squash) in his 100 by 100 foot garden. He then sells the crop at the local farmers' market. Two summers ago, he was able to produ

Approaches for handling customer complaints and listening to, explain appro...

explain approaches for handling customer complaints and listening to customers

What order quantity will minimize the total inventory cost, Question: Y...

Question: You are the Operations Manager at Alien University and one of your responsibilities is to manage the supplies of the University. One of your suppliers has given you

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