Carrying Cost Operations Management

sonly

Need done as soon as possible taking test right now. 

 

Our home construction company still buys nails in 15-pound boxes but now we use an average of 2690 boxes a year.  Preparing an order and receiving a shipment of nails involves a cost of $2.35 per order.  Annual carrying costs are $1.0 per bag.

What will be their total cost of ordering and carrying the nails?  (Include the pennies in your answer)

 

 

Our home construction company buys nails in 15-pound boxes.  We use an average of 2215 boxes a year.  The vendor that makes the nails can produce 33 boxes per day while our usage is 8 boxes per day.  It costs $1.60 to place the typical order.  Annual carrying costs are $0.20 per box.

What will be our average number of boxes on hand if we order the EOQ bags in each order?  (Keep up to two decimal places in your answer)

 

 

    • 10 years ago
    • 5
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