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

Inventory management, How goods and service different affecut the following...

How goods and service different affecut the following operation management function of ogqnization

Explain changing nature of work and the workplace, Effective human resource...

Effective human resources professionals have a solid understanding of the changing nature of work and the workplace. Compare and contrast the evolution of work and the workplace ov

Explain critical risk regardless of progect size or scope, Select three top...

Select three top most critical risk regardless of progect size or scope. Justify your selection. Suggest strategies for the manager to address each type of risk selected.

Explain some inherent challenges in using decision trees, What are some inh...

What are some inherent challenges in using decision trees effectively in today's organizations? How can these challenges be overcome?

Explain managers and supervisors need to have knowledge, Why do all manager...

Why do all managers and supervisors need to have knowledge and skills related to Human Resource management?

Explain various goods from similar amount of resources, Explain various num...

Explain various numbers of goods as output from similar amount of resources (input) in improving productivity. Management can raise productivity that is management can get vari

Pdf, types of manufacturing system and layout

types of manufacturing system and layout

Explain operations management for improving a process, Recently some Operat...

Recently some Operations Management experts have begun insisting that simple minimizing process velocity, which actually means minimizing the time that it takes to process somethin

Customer interface, as a customer service employee to university explain me...

as a customer service employee to university explain measures you would recommend to make even displeased student to patronise the school canteen

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