Cress Electronic Products manufactures components used in the automotive industry. Cress purchases parts for use in its manufacturing operation from a variety of different suppliers. One particular supplier provides a part where the assumptions of the EOQ model are realistic. The annual demand is 5,300 units, the ordering cost is $70 per order, and the annual holding cost rate is 25%. If the cost of the part is $22 per unit, what is the economic order quantity? If required, round your answer to the nearest whole number.Q* = fill in the blank 1Assume 250 days of operation per year. If the lead time for an order is 13 days, what is the reorder point? If required, round your answer up to the nearest whole number.r = fill in the blank 2If the lead time for the part is five weeks (25 days), what is the reorder point? If required, round your answer up to the nearest whole number.r = fill in the blank 3What is the reorder point for part (c) if the reorder point is expressed in terms of the inventory on hand rather than the inventory position? If required, round your answer up to the nearest whole number.On hand reorder point will be fill in the blank 4

The question is related to the Inventory Management. Economic Order Quantity is that level of…

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Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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Cress Electronic Products manufactures components used in the automotive industry. Cress purchases parts for use in its manufacturing operation from a variety of different suppliers. One particular supplier provides a part where the assumptions of the EOQ model are realistic. The annual demand is 5,300 units, the ordering cost is $70 per order, and the annual holding cost rate is 25%.

If the cost of the part is $22 per unit, what is the economic order quantity? If required, round your answer to the nearest whole number.

Q^* = fill in the blank 1
Assume 250 days of operation per year. If the lead time for an order is 13 days, what is the reorder point? If required, round your answer up to the nearest whole number.

r = fill in the blank 2
If the lead time for the part is five weeks (25 days), what is the reorder point? If required, round your answer up to the nearest whole number.

r = fill in the blank 3
What is the reorder point for part (c) if the reorder point is expressed in terms of the inventory on hand rather than the inventory position? If required, round your answer up to the nearest whole number.

On hand reorder point will be fill in the blank 4

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