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10. Joe Henry's machine shop uses 2,490 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The

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10. Joe Henry’s machine shop uses 2,490 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 2,490
Holding cost per bracket per year $1.40
Order cost per order $18.25
Lead time 2 days
Working days per year 250 a] What is the E00? 25%.?! units (round your response to two decimal places]. biWhat is the average inventory if the E00 is used? 127.40 units (round your response to two decimal places}.
What would be the annual inventory holding cost? 5 "8.35 (round your response to two decimal places}. lGlC-iiven the E00. how many orders will be made annually? 9.77 orders (round your response to two decimal places].
What would be the annual order cost? 3 11130 (round your response to two decimal places}. ldlC-liven the E061. what is the total annual cost of managing [ordering and holding) the inventory? 5 356.70 (round your response to two decimal pieces}.
eiWhat is the time between orders? 25.59 days (round your response to two decimal plans]. f) What is the reorder point (ROP)? 19.92 units {round your response to two decimal places}.

Top Answer

Use the following formulas: a) EOQ =  √ ​ ( 2 x D e m a n d p e r y e a r x C o s t p e r o r d e r ) / h o l d i n g... View the full answer

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