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 how does the pursuit of outsourcing align, Should Galanz continue t...

Should Galanz continue to expand its capacity through outsourcing arrangements? How does the Pursuit of outsourcing align with its operations strategy?

Explain database systems design implementation management, It says that the...

It says that there is guided sulotions available for Database Systems Design Implementation Management i bought the Ebook but i cant find it, can someone tell me where i can find t

Explain what monthly penalty is the company incurring, A food processor use...

A food processor uses approximately 29,730 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding c

Line management, what do you mean by "line balancing''? what happens if bal...

what do you mean by "line balancing''? what happens if balance doesn''t exist?

Illustrate the examples of the inventory control systems, Illustrate the ex...

Illustrate the examples of the inventory control systems? Examples of inventory control systems Reorder level systems: When the current stock level decreased below a

Explain conscience in spite of the consequences, Suggest some reasons why a...

Suggest some reasons why a person may go against his /her conscience in spite of the consequences. Provide examples with your response.

Explain when the doctor dictates a decimal such as point1, What do you do w...

What do you do when the doctor dictates a decimal such as "point 1"?

Explain objectives of job evaluation, Explain objectives of job evaluatio. ...

Explain objectives of job evaluatio. Objectives of job evaluation: a) Decides the relative values of various jobs in an organization.  b) Helps to formulate a suitable a

Explain several organizational communication problems, Do some research to ...

Do some research to identify four to six common communication problems that occur in organizations? The text discusses several organizational communication problems. Provide exampl

Advantages of work measurement, Advantages of Work Measurement: 1.    ...

Advantages of Work Measurement: 1.        It serves as a basis  for  methods  analysis by comparing  the efficiency  of alternative  work  method. Other  conditions  beings  t

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