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 comma 000 units per year. The cost of each unit is $97 , 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 120 units. (This is a corporate operation, and there are 250 working days per year).
A) What is the EOQ? B) What is the average inventory if the EOQ is used? C) What is the optimal number of orders per year?
+3
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » 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 comma 000 units per year.