Calculate the economic ordering quantity for Nashville Records Inc. , given the following information : Sales : 15,000 units per year Sales price : $10 Purchase price : $ 5 Carrying cost: 0.25 times inventory value Fixed cost per order : $ 1000
Q: Wheels and deals limited uses 60000 batteries each year in its production of motorcycles at a cost…
A: Ordering Cost: The term, Ordering cost refers to the cost incurred for acquiring inputs. These…
Q: The ordering cost for a certain product is $8 per order and the holding cost is $1 per year. The…
A: Ordering Cost :— It is the expenses incurred by company for ordering of product. Holding cost :—…
Q: 1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: The TOPSHOP company has a monthly demand for an item of 1,000 units/month. This company operates…
A: Answer 3A For the given quantity discount =12% is applies Actual unit price =$10Discount…
Q: 2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information.…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…
A: Economic order quantity indicates the level of units that should be ordered to get the least cost of…
Q: A supermarket uses a supplier for its bottled water. The annual demand for this product is 24000…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that…
A: Economic order quantity (EOQ) model is prepared to minimize the total holding cost and ordering…
Q: Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the…
A: Costs are referred to as the expenses which are required to be paid by the business to run the…
Q: The weekly requirement of a component is 950 units. The order cost is RM85 per order, the holding…
A: Economic Order Quantity (EOQ) was related with inventory management where it helps to order the…
Q: For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200…
A: Economic Order Quantity refers to the number of units the company should add to the inventory and…
Q: The following information relates to a company . The fixed cost per order is ksh 1,500 The…
A: SOLUTION- ECONOMIC ORDER QUANTITY = 2*A*O / C A= ANNUAL DEMAND O= ORDERING COST C= CARRYING COST…
Q: A. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to…
A: Hi student Since there are multiple questions, we will answer only first question. Since first…
Q: A supermarket uses a supplier for its bottled water. The annual demand for this product is 24000…
A: Inventory cycle time is determined by dividing the number of working days by the number of orders.…
Q: The Best Furniture company produces a specialty wood furniture product, and has the following…
A: The details are provided of a company produces specially wood furniture product Required What is…
Q: A company has estimated its economic order quantity for Part A at 3,000 units for the coming year.…
A: Economic order quantity = 2 * Annual usage * cost per order / Carrying cost per unit
Q: What is the economic ordering quantity for chips?
A: The optimum units of any given product that must be ordered such that its ordering and holding…
Q: Assume Palmer Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the…
A: Ordering cost is the expense related to placing the order to the supplier. Such expense is bear by…
Q: Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is…
A: Orders 250 units at a time x 30 orders 7,500 Ordering cost per order ($1,100 / 30) $36.67…
Q: Given the following information, what is the economic ordering quantity (EOQ) for Nashville Records…
A: EOQ(Economic Order Quantity) is quantity of goods that should in one order keeping ordering and…
Q: Brown Sporting Goods, inc. buys baseball at $10 per dozen from its wholesales. Brown buys 1,600…
A: An economic order quantity is a point where there is the minimum cost incurred for purchasing the…
Q: What is BBOS’s total inventory cost per year,
A: The optimum units of any given product that must be ordered such that its ordering and holding…
Q: Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the…
A: The optimum order size is also known as economic order quantity. At this quantity ordered, the total…
Q: Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO…
A: EOQ is the ideal quantity company should order to minimize the cost of holding charges &…
Q: A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and…
A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…
Q: pioneer limited purchases a product which has a steady monthly demand of 20000 units. The product…
A: EOQ is the quantity that minimises total holding cost and which order costs.
Q: The Best Furniture company produces a specialty wood furniture product, and has the following…
A: Inventory: It can be described as a good or material that a company holds for the purpose of…
Q: Tiger Corporation purchases 1,400,000 units per year of one component. The fixed cost per order is…
A: 1) Formula:
Q: pioneer limited purchased a product which has a steady monthly demand of 20 000 units. the product…
A: SOLUTION- FORMULA- ECONOMIC ORDER QUANTITY= 2×A××O/C A= ANNUAL DEMAND…
Q: With an annual demand for cups of 2.3 million, an annual carrying cost per box of cups of P 95, and…
A: Optimal order quantity refers to the number of units to be ordered at one go in order to get the…
Q: Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order,…
A: Economic Order Quantity refers to optimal level of inventory being purchased by an entity while…
Q: Kren processing company uses 2,400 units of a product per year on a continuous basis. The product…
A: At Economic Order Quantity the total cost is minimum. Formula: EOQ=2×Annual demand× cost per…
Q: The annual demand for an item is 20,000 units. The cost to process an order is $25 and the annual…
A: Here, Economic Order Quantity when purchase Price is not constant. When Purchase Price is not…
Q: The annual demand for a certain product is 11,340 units. The company informs you that every time an…
A: The profit of the company will be the main aim of running the operations of the company. The income…
Q: Pioneer Limited purchases a product which has a steady monthly demand of 20 000 units. The product…
A: Economic Order Quantity = [(2 X Annual Demand X Ordering cost per order/ Carrying cost per unit per…
Q: Calculate and interpret the Economic Order Quantity (EOQ). b. At what inventory level should Hamid…
A: Given information is: Hamid Company consumes inventory of 100,000 units of components per year. The…
Q: A company has a contract to supply 5,000 units of an item per year to the retail store. An estimated…
A: Compute EOQ as follows:
Q: Ekor bakery sells doughnut. The annual demand is 10,000 per year. The ordering cost is $21, and…
A: The excess raw material will be having much holding cost and carrying cost. The costs should be…
Q: A supplier sells Hipoint-brand pens to stationary shops. The annual demand is approximately 24,000…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: If ABC would like follow the EOQ model but also maintain a safety stock of 10,000 cases, how much…
A: EOQ, Economic Order Quantity can be defined as the position of ordering the goods according to the…
Q: Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…
A: Hi student: Since there are multiple questions, we will answer only first question. If you want…
Q: Sawtooth Industries uses an economic order quantity (EOQ) model to manage its inventory investment.…
A: Economic order quantity represents the number of units that should be ordered by the entity in each…
Q: A company has annual demand for its product of 800,000 units. Each unit costs $10. Ordering costs…
A: The optimum order level is Economic order quantity or EOQ if no discount is given. So, it is…
Q: Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that…
A: The question is based on the concept of finding economic order quantity (EOQ) . EOQ is defined as…
Q: requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15%…
A: Economic order quantity is most optimal level of quantity that is required such that it minimises…
Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and…
A: EOQ = 2 × D × SH where D= Annual Demand S= Cost of reordering (per unit) H=…
Calculate the economic ordering quantity for Nashville Records Inc. , given the following information : Sales : 15,000 units per year Sales price : $10 Purchase price : $ 5 Carrying cost: 0.25 times inventory value Fixed cost per order : $ 1000
Step by step
Solved in 3 steps
- Given the following information, what is the economic ordering quantity (EOQ) for Nashville Records Inc.? Total demand (sales) 15,625 units per year Selling price = $10 per unit Purchase price (cost) $5 Carrying costs = 25 percent of inventory value Fixed cost per order $1,000 O 3,536 units O 5,000 units O 3,953 units O 1,581 units 2,500 unitsDiagnostic Supplies has expected sales of 98,000 units per year, carrying costs of $5 per unit, and an ordering cost of $8 per order. a. What is the economic ordering quantity? Economic ordering quantity b-1. What is the average inventory? Average inventory b-2. What is the total carrying cost? Total carrying cost units unitsGiven: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order, and carrying costs of P2.40 per pipe. With the given data, can you give me the solution on how to get: -What is the economic ordering quantity? -Total inventory cost at EOQ -How many orders will be placed during the year?-What will the average inventory be? Thank you in advance.
- 1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following: Annual consumption: 6000 units Carrying cost per unit: RO 2 Cost of placing one Order: RO 60 2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units. 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units per month. The valve…1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following: Annual consumption: 6000 units ; Carrying cost per unit: RO 2 Cost of placing one Order: RO 60 2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units. 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units per month. The valve…The annual demand for an item is 20,000 units. The cost to process an order is $25 and the annual inventory holding cost is $4 per item per year. Given the following price-quantity breaks for purchasing the item: Quantity Price 1-1,999 $2.50 per unit 2,000 or more $2.40 per unit What is the quantity you will order each time? Please provide detailed calculation of the total cost (including inventory cost and purchasing cost) for each quantity discount scenario.
- 1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following:Annual consumption: 6000 unitsCost of placing one Order: RO 60Carrying cost per unit: RO 22. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units.4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 unitsper month. The valve cost of…A. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Required: 1. Compute the economic order quantity. 2. How many orders would be placed under the EOQ policy? 3. Compute the annual ordering cost for the EOQ. 4. Compute the annual carrying cost for the EOQ. 5. Compute the total inventory-related cost at the EOQ. 6. Previously, the company had been purchasing 5,000 units of product X per order: What is the ordering cost per year under the previous policy? ii. The annual carrying cost? iii. How much money does the company save over the policy of purchasing 5,000 units per order using the EOQ policy? i. B. Kings Company presents the following information: 1. Annual credit sales: P 25,200,000 2. Collection period: 3 months 3. Rate of return: 12% Kings company considers changing its credit term from n/30 to 3/10, 1/30. The following are…The following information relates to a company . The fixed cost per order is ksh 1,500 The purchase price per unit is ksh 35 The carrying costs per unit of inventory 10% of the purchase price The annual demand is 5,000units Calculate theEconomic Order Quantity Total number of orders in a year Leadtime
- 4. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma. Example: 10,000 Required: a. Compute the economic order quantity. b. How many orders would be placed under the EOQ policy? c. Compute the annual ordering cost for the EOQ. d. Compute the annual carrying cost for the EOQ. e. Compute the total inventory-related cost at the EOQ.The Best Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Ordering costs per purchase order Carrying costs per year P15,000 P300 per unit Annual demand is 20,000 packages per year. The quantity per order equals 1,000 units. What is the total annual ordering and holding costs? P450,000 P25,000 P300,000 P150,000A supplier sells MF Tires to dealers. The annual demand is approximately1,000 tires. The supplier pays P50 for each tire and estimates that the annualholding cost is 20 percent of the total value of tires. It costs approximatelyP25 to place an order. The supplier currently orders 80 tires per month.Required:a. Calculate ordering, holding, and total inventory costs for thecurrent ordered quantity.b. Determine the EOQ.c. How many orders will be placed per year using the EOQ?d. Calculate ordering, holding, and total inventory costs for the EOQand also determine the change in total inventory cost.