need only part F i have done all other just one attempt left for F part Thomas K
ID: 363144 • Letter: N
Question
need only part F
i have done all other just one attempt left for F part
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 or 5,200 units per year. The cost of each unit is S104, and the inventory carrying cost is $11 per unit per year. The average ordering cost s S31 per order. It takes about 5 days for an order to amive, and the demand tor 1 week is 118 units. (This is a corporate operation, and there are 250 working days per year). a) What is the EOQ? 182.36 units (round your response to two decimal places). b) What is the average inventory if the EOQ is used? 91.18 units fround your response to two decimal places) c) What is the optimal number of orders per year? 32.35 orders (round your response to two decimal places d) what is the optimal number of days in between any two orders? 7.73 days fround your response to two decimai places) e) What is the annual cost of ordering and holding inventory? $ 2005.83 per year (round your response to two decimal places) f) What is the total annual inventory cost, including the cost of the 5,900 units? $ 790583 per year (round your response to two decimal piecesExplanation / Answer
I have checked and answers for all parts from #a to #e are correct
Regarding answer to question f :
Total annual cost of purchase = 5900 units / year x $104 as cost/ unit = $613,600
Thus , total annual inventory cost including cost of 5900 units
= Total annual cost of purchase + Annual cost of ordering and holding inventory
= $613,600 + $2005.83
= $615605.83
TOTAL ANNUAL INVENTORY COST INCLUDING COST OF 5900 UNITS = $615605.83
TOTAL ANNUAL INVENTORY COST INCLUDING COST OF 5900 UNITS = $615605.83
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.