Manfred Manufacturing Is Involved in the Production of Machine Parts

question 33

Essay

Manfred Manufacturing is involved in the production of machine parts.The company uses 600,000 pounds of steel annually.The current purchasing cost for steel is $3.20 per pound.The carrying cost for inventory is 10 percent of the purchase price.The cost of ordering steel is $800 per order.The company has decided to maintain a safety stock of 15,000 pounds.The delivery time per order is 6 days.The company works 365 days a year. a.Determine the optimal EOQ. b.How many orders will be placed annually? c.What is the average inventory? d.What is the inventory order point? (That is,at what level of inventory should a new order be placed?) e.What is the company's total inventory costs for the year?

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Definitions:

Growing Pains

Growing pains signify the difficulties or challenges faced by organizations or individuals when expanding or progressing rapidly.

Psychological Disorders

Mental health conditions characterized by changes in mood, behavior, and cognitive functions that disrupt a person's daily life.

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The ability to accomplish a task or produce a desired outcome with minimum waste of time, resources, or effort.

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The total assets, financial, human, or material, that are currently accessible for use in achieving goals or completing projects.