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Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventor
Posted: Wed May 04, 2022 8:21 am
by answerhappygod
- Thomas Kratzer Is The Purchasing Manager For The Headquarters Of A Large Insurance Company Chain With A Central Inventor 1 (38.17 KiB) Viewed 60 times
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 6,100 units per year. The material cost of each unit is $103, and the inventory carrying cost is $8 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 122 units. (This is a corporate operation, and there are 250 working days per year). Based on this information, the EOQ is 210.30 units. Assuming the EOQ is used: a) What is the average inventory? units (round your response to two decimal places). b) What is the optimal number of orders per year? orders (round your response to two decimal places). c) What is the optimal number of days in between any two orders? days (round your response to two decimal places).