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(Solved): California. They have 15 locations concentrated primarily in heavily populated areas. They sell ...



California. They have 15 locations concentrated primarily in heavily populated areas. They sell thousands of products made by

Using the \( Q^{*} \), what is the annual holding cost \( (\mathrm{AHC}) \) ? (Choose the closest answer)
\( \$ 17,062 \)
\( Using the \( Q^{*} \), what is the annual ordering cost \( (A O C) \) ? (Choose the closest answer)
\begin{tabular}{l}
\( \$ What is the total annual cost of inventory, TC? \( \left(Q=Q^{\star}\right) \) (Choose the closest answer)
\( \$ 1,503,351 \)

California. They have 15 locations concentrated primarily in heavily populated areas. They sell thousands of products made by hundreds of different manufacturers. Buckshot sells everything from phones, video cameras, and video game consoles to large items like televisions. Sony is one of their larger suppliers. They offer products in nearly every category Buckshot offers to its customers. In fact, Sony sells multiple cell phone models through Buckshot. One such model is the Q9900. One of Buckshot's San Francisco stores is forecasted to sell about 7800 units of the Q9900 in the coming year. This forecasted demand is about average in terms of Buckshot's 15 other California locations. Presently they order 900 units of the Q9900 every 6 weeks. Each store fills weekly orders through its Sony Distributor for items like TV's, cameras, and of course, cell phones, in addition to many other items. Orders for cell phones must be made in increments of 100 units. The distributor takes only one order per week, but Buckshot is not obligated to order every item every week. That order is then shipped 2 days later to that individual Buckshot Electronics location by truck. Buckshot's Central Procurement is looking to save money by investigating order sizes and subsequent order frequency. You are being asked to create a recommendation for order size and time between orders for the Q9900 based on the numbers for this San Francisco location. Answer the questions that follow in order to create a detailed report for your supervisor. Annual Per Unit Holding Costs are estimated at 35\% of the wholesale cost of the Q9900. Using the \( Q^{*} \), what is the annual holding cost \( (\mathrm{AHC}) \) ? (Choose the closest answer) \( \$ 17,062 \) \( \$ 15,644 \) \( \$ 8,254 \) \( \$ 12,360 \) \( \$ 22,520 \) \( \$ 21,205 \) \( \$ 15,300 \) \( \$ 7,276 \) \( \$ 14,779 \) \( \$ 9,187 \) \( \$ 6,550 \) Using the \( Q^{*} \), what is the annual ordering cost \( (A O C) \) ? (Choose the closest answer) \begin{tabular}{l} \( \$ 12,350 \) \\ \( \$ 16,550 \) \\ \( \$ 14,779 \) \\ \( \$ 15,312 \) \\ \( \$ 22,276 \) \\ \( \$ \$ 17,062 \) \\ \( \$ \$ 24,254 \) \\ \hline\( \$ 15,644 \) \\ \( \$ \$ 21,205 \) \\ \( \$ \$ 22,520 \) \\ \hline\( \$ 22,125 \) \\ \hline\( \$ 400 \) \end{tabular} What is the total annual cost of inventory, TC? \( \left(Q=Q^{\star}\right) \) (Choose the closest answer) \( \$ 1,503,351 \) \( \$ 1,915,351 \) \( \$ 1,297,351 \) \( \$ 1,603,762 \) \( \$ 3,695,762 \) \( \$ 1,386,537 \) \( \$ 2,115,351 \) \( \$ 1,027,762 \) \( \$ 2,045,351 \) \( \$ 2,576,762 \) \( \$ 2,388,762 \)


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