Cost of placing an order = $625 cost of holding a laptop every week = $8 Total n
ID: 372854 • Letter: C
Question
Cost of placing an order = $625
cost of holding a laptop every week = $8
Total number of weeks = 52
Demand per month = 200 units
Demand per year = 12*200 = 2400 units
Inventory cost per year = 2400 * 625 + 52 * 8 = $1,500,416
Reorder point = lead time demand + safety stock
= 200/4 * 3 + 200/28 * 2 = 165
Stock level - In order to find stock level, we need to check what is the maximum stock and minimum stock usage levels.
But to find the stock level in general, we calculate it based on the consumption for three weeks. That is 150 units of stock has to be maintained.
Explanation / Answer
ACME electronics sales a particular kind of laptop. It cost $625 to place an order with the manufacturer. The cost of carry one laptop every week is $8. The demand is forecasted as 200 per month. Each order takes 3 weeks to arrive to store and 2 days being processed.
¨Find everything. ( Inventory Cost, Stock Level, Reorder Point I need to see calculations. Thank you