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(Solved) iPad '5' 2:03 PM 1 >3 100%:- E wcu.b|ackb0ard.com 1of4 Module 7 Individual Problems Be sure to always round inventory quantities (Q, R, 55,...


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iPad ’5‘ 2:03 PM 1 >3 100%:-
E wcu.b|ackb0ard.com 1of4 Module 7 Individual Problems Be sure to always round inventory quantities (Q, R, 55, Imax) values up to the next integer for the final
answers. All other values should be calculated based on the standard formulas without rounding them
to integers and should be entered with one decimal place (e.g. average inventory, average number of orders, etc.). M7_lNDi. Chris Froome is a purchasing agent for a firm that sell components for high performance
bicycles. One of the most popular components is the TDF bicycle frame which has an annual demand of
2,800 units. The cost of each frame is $570 and the inventory carrying cost is estimated to be 17% of the
cost of each frame. Chris has made a study of the costs involved in placing an order for any of the frames
the firm stocks, and he has concluded that the average ordering cost of $81.50 per order. Furthermore,
it takes about one week for an order to arrive from the supplier, and the TDF operates 50 weeks per yeah a) What is the annual ordering cost? b) What is the annual holding cost? c) How many orders (on average) would be placed per year?
d) What is the average inventory? e) What is the reorder point? f) What is the E00?

 


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