. Use this information to answer the following questions RobCo is a distributor of Protectron Security Robots. The annual demand for their Protrectrons is 10,880 units. These robots cost $6,200 each. The annual carrying cost for their warehouse is 29% and for their in-transit shipping it is 16%. Their ordering costs are $200 per order. They operate 320 days per year. The in-transit shipping time for this item is 7 days (this is also your Lead Time). How many units are in the average in-transit inventory? 168 O 238 What is the EOQ for this product? O 173 O 130 . O 130 O 49 O 156 Ⓒ230 What is the annual in-transit carrying cost? $136,100 O $129,000 O $154,700 O $236,100 What is the Total Annual Cost? O $515,850 O $324,500 O $235.000 O $866,600

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Solve only question #3 and #4

Use this information to answer the following questions
RobCo is a distributor of Protectron Security Robots. The annual demand for their
Protrectrons is 10,880 units. These robots cost $6,200 each. The annual carrying
cost for their warehouse is 29% and for their in-transit shipping it is 16%. Their
ordering costs are $200 per order. They operate 320 days per year. The in-transit
shipping time for this item is 7 days (this is also your Lead Time).
How many units are in the average in-transit inventory?
Ⓒ168
What is the EOQ for this product?
O 238
O 173
O 130
O 130
O 49
O 156
3.
Ⓒ230
What is the annual in-transit carrying cost?
4.
$136,100
O $129,000
O $154,700
O $236,100
What is the Total Annual Cost?
O $515,850
O $324,500
O $235,000
O $866,600
Transcribed Image Text:Use this information to answer the following questions RobCo is a distributor of Protectron Security Robots. The annual demand for their Protrectrons is 10,880 units. These robots cost $6,200 each. The annual carrying cost for their warehouse is 29% and for their in-transit shipping it is 16%. Their ordering costs are $200 per order. They operate 320 days per year. The in-transit shipping time for this item is 7 days (this is also your Lead Time). How many units are in the average in-transit inventory? Ⓒ168 What is the EOQ for this product? O 238 O 173 O 130 O 130 O 49 O 156 3. Ⓒ230 What is the annual in-transit carrying cost? 4. $136,100 O $129,000 O $154,700 O $236,100 What is the Total Annual Cost? O $515,850 O $324,500 O $235,000 O $866,600
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