Mathematics, 10.12.2019 03:31 dani3112
Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. thomas's fastest-moving inventory item has a demand of 5850 units per year. the cost of each unit is $103 and the inventory carrying cost is $9 per unit per year. the average ordering cost is $29 per order. it takes about 5 days for an order to arrive, and the demand for 1 week is 117 units. (this is a corporate operation, and there are 250 working days per year).
a. what is the eoq?
b) what is the average inventory if the eoq is used?
c) what is the optimal number of orders per year?
d) what is the optimal number of days in between any two orders?
e) what is the annual cost of ordering and holding inventory?
f) what is the total annual inventory cost, including the cost of the 5850 units?
Answers: 3
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Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain wit...
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