Find average inventory, Operation Management

Assignment Help:

A grocery store needs to sell 3,000 cartons of 2L 2% milk per month. The sales is relatively constant throughout the month. The owner of this grocery store purchases milk from a supplier 50 miles away for $2 per carton, and it takes a day to restock. The holding cost per carton per month is $1.5, and the ordering cost per order is about $18.5 including labor, gas and depreciation. Consider a month of 30 days.

The optimal order quantity is about cartons of milk, and the average inventory is about cartons. (Please round to the closest integer and include no units.)

Given the optimal order quantity calculated above, if the average inventory is 136 cartons, then the monthly holding cost is dollars, and the total cost including the cost of supply, holding and ordering is dollars.

The reorder point is cartons.


Related Discussions:- Find average inventory

Explain negotiated a non-deliverable forward contract, Johnson, Inc., a U.S...

Johnson, Inc., a U.S.-based MNC, will need 10 million Thai baht on August 1. It is now May 1. Johnson has negotiated a non-deliverable forward contract with its bank. The reference

Explain inventory management technology, Costco is able to keep its invento...

Costco is able to keep its inventory expenditure relatively low through its management technology and cutting-edge point-of-sale inventory management technology. As a result, Costc

Transportation, In VAM method when two penalties are same then which one is...

In VAM method when two penalties are same then which one is to be selected

Calculate seasonal index for summer, The number of visitors at a theme park...

The number of visitors at a theme park by season and year has been recorded and is given in the following table- Quarter 2003 2004 2005 2006 Winter 48 51 43 18 Spring 55

Explain reluctant to express contrary opinions refers to, The tenanndency f...

The tenanndency for people to be so committed to a cohesive team that they are reluctant to express contrary opinions refers to ____. a. group anxiety b. group innovation

Explain stakeholder relationships and social responsibility, Watch this Vid...

Watch this Video "Blue jean waste". Describe your reaction to this video and how you would respond if you were a leader of one of the corporations involved. In your journal entry

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

#questionI want some project of travel chart ..

Order winning and order qualifying criteria, 1. What you think might be the...

1. What you think might be the order winning and order qualifying criteria for: McDonald's, Southwest Airlines and a university?  Answer:

Argument for application of methods of scientific management, 1. What are t...

1. What are the arguments for and against the application of the methods of scientific management? Answer: The main argument against scientific management is that in de-skilling

Explain every business must be prepared to deal, Every business must be pre...

Every business must be prepared to deal with the global economy. True False

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