Assignment:
Q: Joe Henry's machine shop uses 2, 510 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 2510
Holding cost per bracket per year $1.60
Order cost per order $19.50
Lead time 2 days
Working days per year 250
a) What is the EQQ?
b) What is the average inventory if the EOQ is used? units What would be the annual inventory holding cost?
c) Given the EOQ, how many orders will be made annually? orders What would be the annual order cost?
d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory?
e) What is the time between orders?
f) What is the reorder point (ROP)?