Double T appliance is a retailer of small appliances in West Texas.  Double T gets all of their merchandise from GE which it then sells to the people of the South Plains. Their annual demand is 10,000 units and the ordering cost is $100 per order.  The carrying cost per unit is $50.00 What is their expected annual carrying cost (not including the costs of the goods) if the Economic Order Quantity is used and is equal to 200 units?

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A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.80 per stone for quantities of 600 stones or more, $9.20 per stone for orders of 400 to 599 stones, and $9.70 per stone for lesser quantities. The jewelry firm operates 230 days per year. Usage rate is 16 stones per day, and ordering costs are $45.a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Do not round intermediate calculations, except for order quantities which should be rounded to the nearest whole number. Round your final answer to the nearest whole number.)     b. If annual carrying costs are 20 percent of unit cost, what is the optimal order size? (Do not round intermediate calculations, except for order quantities which should be rounded to the nearest whole number. Round your final answer to the nearest whole number.)       c. If lead time is 3 working days, at what point should the company reorder? (Do…

An engineer has decided to pursue ordering option for a particular item on an as needed basis as oppose to stocking it. To stock the item, inventory inspection costs $500 annually. The cost to place an order is estimated at $125. For the ordering option, there is an additional $85 special delivery charge per order. Demand for the $20 item is 2,300 units per year. The annual holding cost rate is 40% of the item price. Calculate range of the order quantity that will make it economical to order this item every time. If the engineer decides to stock the item what is the order quantity that is economical.