According to the sales record at HEB, the monthly demand for Emerson electric crockpot is certainly

According to the sales record at HEB, the monthly demand for Emerson electric crockpot is certainly 25 units. HEB pays $30 for each crockpot at the wholesale level. Shipping and handling as well as other overhead expenses related to placing an order is $15. The quarterly carrying cost to hold one crockpot is 2% of the purchase cost. Under normal circumstances, Emerson would deliver an order from its local warehouse to a store in exactly 10 days.

Which FOQ inventory model should we use for the analysis here? What are the optimal order quantity and reorder point based on this FOQ inventory policy? What is the optimal (corresponding) annual total cost for this inventory policy? Assume that the HEB store opens 365 days in a year.

Answer: Optimal order size (Q) is 61 units; optimal reorder level (R) is 8 units; optimal annual total cost (TC) is $9146.97.

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE20

Our writing company helps you enjoy campus life. We have committed and experienced tutors and academic writers who have a keen eye in writing papers related to Business, Management, Marketing, History, English, Media studies, Literature, nursing, Finance, Medicine, Archaeology, Accounting, Statistics, Technology, Arts, Religion, Economics, Law, Psychology, Biology, Philosophy, Sociology, Political science, Mathematics, Engineering, Ecology etc.

NEED ESSAY WRITING HELP?

-Plagiarism free

-Timely delivery