optimal order quantity, the total minimum inventory cost, and the reorder point

Related BrainMass Solutions

• Reorder Point/ Optimal Order/ Total Carrying Cost

  Using MIN function find out minimum total cost and corresponding quantity Minimum total cost = $8,610.00 Quantity = 400 Optimal order quantity is 400 gallon as the total cost is minimum at this size. b.

• Calculating company inventory given annual sales and costs.

  To find the optimal order quantity (Q), you must find the minimum point on the total cost curve.

• Inventory Management: Safety Stock, Re-Order, EOQ

  This solution shows the detailed calculations for optimal order quantity using the Economic Order Quantity formula, taking into account a safety stock consideration and inventory levels.

• Calculating the inventory costs and optimal reorder point

  What is the total annual cost (Purchase Cost + Ordering Cost + Holding Cost) based upon ordering 250 units each time an order is placed? 5. What is the optimal reorder point based upon ordering 250 units each time an order is placed? 1.

• Quantitative Methods: Inventory Model

  Total cost = holding cost + ordering cost = (order quantity/2) x holding cost per unit per year + (annual demand/order quantity) x cost per order 2. Optimal order quantity (Q*) is found when annual holding cost = ordering cost 3.

• Inventory Management

  This proves that the EOQ and other computations are correct. Economic order quantity is the quantity at which ordering cost is equal to inventory cost. This is the point at which total cost is minimum.

• Calculating various inventory paremeters

  reorder point and safety stock.

• Calculating EOQ and inventory costs

  What is the optimal reorder point based upon using the EOQ? 6. How many orders per year will be necessary based upon using the EOQ? 1. What is the economic order quantity (EOQ) that will minimize inventory costs?

• Inventory policy with uncertain demand and backorder

  quantity or lot size = 21 cans Reorder point = Safety stock + demand during lead time In order to find the optimal reorder point we need to find optimal safety stock first.