An automotive supply store sells a product that has a demand of 400 units per month. Its supplier charges an ordering cost of $60 per order and $25 per unit with a 20% discount for orders of 250 units or higher. The store incurs a 20% annual holding cost. What is the store's annual holding cost if it orders at a quantity of 300 units?

The relationship between price and quantity supplied is typically O direct O inverse

A company has an average demand of 30 units per day. The supplier's lead time averages 7 days. Assume that the combined standard deviation of demand over the lead time has been calculated and is equal to 20 units. One unit costs $10 and the inventory carrying cost is 25 percent. What is the reorder point for the company if it decides on a 99 percent service level?

A bedding store has a steady demand for 300 mattresses each year. The store orders mattresses from a regional wholesaler at a cost of $50 per order. The cost of each mattress depends on the order size, and the annual holding cost for mattresses is 5% of the unit cost. The store sells the mattresses for a retail price of $250. a. Use this information to fill in the following table in your answer booklet: D Annual demand Order cost Co Holding cost ratio I Selling price per unit 7" Annual revenue rD b. The wholesaler offers the following discounts depending on the order size: Discount category Order size Discount Unit cost C 1 0-49 0% $200 2 50-99 5% $190 3 100 or more 10% $180 For each discount category, find the holding cost C₁, economic order quantity Q and total annual cost TC TC = = 10 °C ₂ + 2 = C₁ + DC Co+DC. How many mattresses should the store order at a time to minimise the total annual cost? c. Fill in the following table in your answer booklet based on the economic order…

A coffee shop consumes 350 lbs of coffee per week at a steady rate. The coffee shop buys coffee from a supplier at the cost of $10 per lb, and ordering cost of $5 per order. The supplier takes 8 days to deliver an order (assume that 1 week = 7 days). What should be the reorder point (in pounds) for the coffee shop (i.e., at what level of inventory it should place an order with the supplier).

Every year XYZ Corp. sells 3,300 units of its product. It is charged $56.50 every time it reorders from its supplier and its inventory holding costs are $6.20 per unit. In order to minimize overall inventory costs, what would be the firm's average number of units that it holds?

Johnson Tire Plaza (JTP) is a large chain of tire shops, who sells various brand of automobile tires. The yearly demand of a particular brand of time is about 8,888 units per year. JTP purchases these tires from a supplier. The ordering cost is $124 per order and the holding cost is  $19 per tire per year. The supplier always deliver the shipment within 6 days after receiving a  replenishment order from JTP. The company operates 250 days per year. Assume EOQ model is applicable.  What is the optimal annual inventory cost for JTP? Use at least 4 decimal places.

Company C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges Company C&A $30 per order and $50 per bottle. Company C&A’s annual holding cost percentage is 40%. Assume Company C&A operates 50 weeks in a year. What should C&A’s EOQ for this item be? What is C&A’s total annual cost using this EOQ?

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I run a Ford car dealership, and I experience known and constant demand for cars. I sell 10,000 cars annually. The cost of ordering is $1,108, and the annual cost of holding a car on the lot is $500. What is the economic ordering quantity (EOQ)? Round to the nearest whole number (so if your answer is 443.363, round to 443)