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 tables of data that firedup will need, FiredUp, Inc is a small busi...

FiredUp, Inc is a small business owned by Curt and Julie Robards.Based in Brisbane, Australia, FiredUp manufactures and sellsFiredUp, a light-weight camping stove. Recall that Curt

Location planning, What are various decision criteria for deciding a locati...

What are various decision criteria for deciding a location for a business setup? Explain these decision criteria with reference to a location decision for setting up a

Travel chart, #questionI want some project of travel chart ..

#questionI want some project of travel chart ..

Calculate annual demand for the inventory item, Ashish  keeps  his  invento...

Ashish  keeps  his  inventory in special containers. Each  container occupies 10  sq fit of  store space. Only  5000 sq ft  of the storage space is available. The  annual demand fo

Explain the company''s competitive advantage, SWOT Analysis (3 to 4 pages) ...

SWOT Analysis (3 to 4 pages) Internal Analysis (Strengths and Weaknesses). For example: Describe the company's competitive advantage by discussing its efficiency, quality, motivati

Explain the affidavit, Which section of the project charter signed by spons...

Which section of the project charter signed by sponsor, project manager and core team members typically describes decision authority and the expected commitment for each of these k

Explain judging a worker not one sexualorienation, Which of the following s...

Which of the following statement concern sexual orientation is true/ 1.sexual orientation is protected by the eeoc/ 2.attitude toward gays a in the workplace are not changing signi

Define the reasons why a firm would seek iso registration, Discuss the reas...

Discuss the reasons why a firm would seek ISO 9000 registration.

Explain measuring the impact of a capital acquisition, Measuring the impact...

Measuring the impact of a capital acquisition on productivity is an example of multifactor productivity.

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