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

Compute the gagne-briggs, Critically evaluate the Gagne-Briggs (Gagne sound...

Critically evaluate the Gagne-Briggs (Gagne sounds like Gone-Yea. Briggs rhymes with "bigs") theory of instructional design Is it complete; what is missing; how would you change i

Explain the nature of barriers to entry, 1).Under what environmental condit...

1).Under what environmental conditions are price wars most likely to occur in the industry? What are the implications of price wars for a company? How should a company try to deal

Evaluate website effectiveness, Choose any company website and evaluate its...

Choose any company website and evaluate its effectiveness. Write an essay of between 750-1000 words, double-spaced, focusing on such topics as the web site's attractiveness and the

What is reliability is decriminator in cost of gps receivers, The DAGR GPS ...

The DAGR GPS receiver will have a 25% increase inreliability over the PLGR GPS receiver. Using the PLGR as an analogy, an analyst estimated that the DAGR would cost 25% more than t

What benefits do you think the employees derive, Please answer the followin...

Please answer the following questions 1. Why do you think it is important for HR to be a strategic partner to the business? 2. What benefits do you think the employees derive

Explain major considerations regarding logistics alliances, What are the ma...

What are the major considerations regarding logistics alliances, for: a) initiation? b) implementation? c) maintenance? d) termination?

Explain kinds of skills needed by service workers, How does the degree of c...

How does the degree of customer contact relate to the kinds of skills needed by service workers and the degree of training they require?

Alternative control chart constructions, Alternative Control Chart Construc...

Alternative Control Chart Constructions In this treatment of the subject, description has been of charts with both warning and action limits, and these limits calculated with

Principleand practices of management, how will you influencepeople to striv...

how will you influencepeople to strive willingly for group objectives in your organisation(target based industry)apply your interpersonal influence through communication process to

Assignable causes - causes of variability, Assignable Causes - Causes of Va...

Assignable Causes - Causes of Variability Variability in process output may also be the result of external causes which are separately identifiable, and which are not inherent

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