Solve-Inventory-Models-Solve-problems-in-excel-assignment-help-

The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 40 cars per month. The cars cost $60 each, and ordering costs are approximately $15 per order, regardless of the order size. The annual holding cost rate is 20%.

a. Determine the economic order quantity and total annual cost under the assumption that no backorders are permitted.

b. Using a $45 per-unit per-year backorder cost, determine the minimum cost inventory policy and total annual cost for the model racing cars.

c. What is the maximum number of days a customer would have to wait for a backorder under the policy in part (b)? Assume that the Hobby Shop is open for business 300 days per year.

d. Would you recommend a no-backorder or a backorder inventory policy for this product? Explain. e. If the lead time is six days, what is the reorder point for both the no-backorder and backorder inventory policies?

If you accept to do this I will send sample of what the spreadsheet should look like.

 

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.