Economic order quantity, average inventory and total carrying cost

Related BrainMass Solutions

• Important information about Economic Order Quantity (EOQ)

  Economic order Quantity (EOQ) = 200 cartons The solution calculates Orders per month, Total orders cost, Average inventory, Total Carrying costs and Total carrying costs for different order sizes to arrive at Economic Order Quantity (EOQ) are examined

• Inventory Management - Ordering and Inventory

  Economic ordering quantity 2. Number of orders. 3. The average inventory 4. Total cost of inventory

• Economic Order Quantity and Inventory Control System

  What will the average inventory be? What is the total cost of ordering and carrying inventory? What is the economic ordering quantity?

• Rish Corporation: calculate economic ordering quantity, average inventory and more...

  Rish anticipates sales of 75,000 units per year, an ordering cost of $8 per order, and carrying costs of $1.20 per unit. a. What is the economic ordering quantity?

• Calculating the EOQ and various inventory costs

  Average inventory=order quantity/2=1500/2=750 Carrying cost per unit=Ch=$15 Annual holding cost=Average inventory*Ch=750*15=$11,250 3. Under the current ordering policy, what is the annual total ordering cost?

• Paper Company Inventory Management and Economic Order Quantity (EOQ)

  Please see part 1 and 2. The instructions were to fill out the table. Part 1. Order size 100 200 250 500 Order per month 10 5 4 2 Total order cost 300 150 120 60 Average inventory ? ? ? ? Total carrying Costs ? ? ? ?

• Description of Optimal Order Quantity

  The cost to the bookstore for placing an order is $120 and the carrying cost is 25% of the average annual inventory value. The bookstore manager estimates that 1,700 sweatshirts will be sold during the year.

• Academic approach to Inventory Management

  Determine: a. the economic order quantity b. the total cost of carrying the bolts(excl purchase price) c. the average inventory Annual usage/demand, A = 4000 boxes Price per box, P = $28 Ordering cost, S = $250 per order Holding cost rate, c = 15%

• Present Total Annual Stocking Costs

  Number of orders = Annual demand / order quantity Average inventory = Order quantity / 2 Total annual stocking cost = Ordering cost + Inventory carrying cost Ordering cost = number of orders x ordering cost Inventory carrying cost = Carrying cost