A local TV repairs shop uses 36,000 units of a part each year (A maximum consumption of 100 units per working day). It costs P20 to place and receive an order. The shop orders in lots of 400 units. It cost P4 to carry one unit per year of inventory. Calculate the Economic Order Quantity If you are expecting 2 days delay, how much is the safety stock? If you are expecting 2 days delay, how much is the reorder point?
Q: Martin company uses 625 units of a part each year. The cost of placing one order is $8; the cost of…
A: Economic order Quantity (EOQ) = [(2*Annual Demand * Set up cost)/Carrying cost]
Q: The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00…
A: EOQ = √ 2 X Annual Demand X Odering cost / Holding cost EOQ = √ 2 X 40,000 X 10 / 30 X 15% EOQ = √…
Q: A moped manufacturing company needs 100,000 units of moped tires for its production per year.The…
A: Economic order quantity was an inventory management costing principle used to find out required…
Q: Candy Delight Company manufactures candy. The company buys the sugar used in 15-pound boxes that…
A: Reorder Point is that level of minimum inventory which a manufacturing entity shall retain before it…
Q: An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual…
A: The total cost of inventory is affected by the cost of the items purchased, ordering cost, and…
Q: NEKO Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory…
A: Carrying cost refer to the costs incurred in maintaining a given level of inventory. These costs…
Q: A retailer anticipates selling 4,050 units of its product at a uniform rate over the next year. Each…
A: Economic order quantity is the optimal quantity to be ordered to minimize the total cost.
Q: Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 uni per…
A: Solution 1- EOQ =2×A×O/C A= ANNUAL CONSUMPTION O= ORDERING COST C=CARRYING COST/STORAGE COST…
Q: A Store has annual demand of 29,000 units. The annual carrying cost for a unit is $15.5, and the…
A:
Q: maximum of 600 boxes. The supplier takes an average of 5 days to deliver the order. During busier…
A: Just for the sake of other students help, I'll solveall the questions given here.1. Reorder Point…
Q: The JMI Creamery Co. produces ice-cream bars for vending machines and has an annual demand for 72000…
A: As student requested to answer only first two parts. Hence only 2 parts are answered8
Q: [The following information applies to the questions displayed below.] Iguana, Inc., manufactures…
A: The question is based on the concept of Cost Accounting.
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Material Costing - It refers to the systematic control of storing, purchasing, and consumption of…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION-1 THE ANNUAL INVENTORY RELATED COST IS THE SUM OF THE ANNUAL HOLDING AND ORDERING COST.…
Q: A local retailer anticipates an annual demand 15000 units of a product. The retailer allows…
A: The inventory management aims to accomplish to reach satisfaction on the custom services…
Q: Phillip F lamm's Computer Store in Texas sells a printer for $200. Demand is constant during the…
A: Inventory refers to the stock that the company has held for the resale purpose or the goods that are…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Since there are several subparts, according to Bartleby guidelines, we will answer the first three.…
Q: Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer.…
A:
Q: Alpha retail store predicts an annual demand of 4920 kgs of a food product. It costs RO 100 to make…
A: In order to minimise the total inventory costs that includes ordering costs and inventory holding…
Q: Wall’s Pharmacy will have to sell a new product that has an estimated revenue of $5,100 per month…
A: We have to find out net income per month and than find out number of months required to recover…
Q: Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units…
A:
Q: 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the…
A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…
Q: Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of…
A: Given: It has 250 working days. Each day, it sells an average of 500 boxes but may sometimes sell a…
Q: he General Chemical Company uses 150,000 gallons of hydrochloric acid per month. The cost of…
A: Economic order quantity is that level of reorder quantity which minimizes the total cost of carrying…
Q: Alpha retail store predicts an annual demand of 4800 kgs of a food product . It costs RO 100 to make…
A: Following is the answer to the given question
Q: The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet. The annual…
A: Given information is: The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super…
Q: der. Stora
A: Given: To calculate the inventory of the company as,
Q: Each year the Alma Vacuum Company (AVC) manufactures 35,000 of its Supe Duper Dirt Grabber carpet…
A: Option D is the Correct Answer i.e 10,000
Q: The Pluto Company has been buying a given item in lots of 3,200 units which is quarterly supply. The…
A: no of lots=4 cost per order=15 Total cost=inventory cost+order cost+carrying cost…
Q: 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average…
A: As per BARTLEBY guidelines, when multiple subparts questions are given then solve first six sub…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: The reorder point refers to the level of inventory at which the stock is purchased to be sold in the…
Q: What is the annual demand for the boxes of candles? 2. How much is the carrying cost of one box of…
A: Economic order quantity is the optimum order quantity which provides with the minimum expense in…
Q: Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer.…
A: Ordering Cost is a type of expenditure used in computation of Economic Order Quantity (EOQ). It…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: EOQ helps in determining the level of quantity at which an entity can balance its ordering &…
Q: A Mobile shop sells 5000 mobiles in a year and the sales is relatively constant throughout the year.…
A: Hi student Since there are multiple subparts,we will answer only first three subparts. If you want…
Q: supplier may take 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost…
A: Given: It sells an average of 500 boxes up to maximum 600 boxes. The ordering cost average P400 per…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Ggg
Q: Bell Computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per…
A:
Q: A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year, Each bottle costs…
A: Given, Annual Demand = 10,000 bottles Ordering Cost = $125 per order Holding Cost = $10
Q: Clothes, Inc., has an average annual demand for red, medium polo shirts of 25,000 units. The cost of…
A: Cost accounting is one of the important branch of accounting. Under this branch, all type of costs…
Q: One of the bulk raw beverages, which Blanchard buys, is gin. Assume that the cost of purchasing…
A: The question is related to Inventory Management. The Economic Order Quantity is that level of…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION- FORMULAS- 1-REORDER POINT=MAXIMUM DAILY DEMAND…
Q: A service garage uses 204 boxes of cleaning cloths a year. The boxes cost $12 each. The cost to…
A: Annual requirement = 204 Boxes Order size = 12 Boxes Ordering cost per order = $ 15 Annual holding…
A local TV repairs shop uses 36,000 units of a part each year (A maximum consumption of 100 units per working day). It costs P20 to place and receive an order. The shop orders in lots of 400 units. It cost P4 to carry one unit per year of inventory.
- Calculate the Economic Order Quantity
- If you are expecting 2 days delay, how much is the safety stock?
- If you are expecting 2 days delay, how much is the reorder point?
Step by step
Solved in 2 steps
- A hardware store sells paint that has a demand of 9,706 gallons per year. The store purchases the paint from a supplier for 11.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 175 dollars per order. The paint supplier has a lead time of 10 days. What is the annual ordering cost if the store uses the order quantity of 2,103 gallons per order? Assume EOQ model is appropriate. Use at least 4 decimal places.An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery’s value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. What is the economic order quantity? Based on your answer above, how many orders will be placed per year using the EOQ? Determine the ordering, handling, and total inventory costs for the EOQ. Determine the effective annualized cost of financing for the following credit terms, assuming that (1) discounts are not taken, (2) accounts are paid at the end of the credit period, and (3) use 365=day year: a. 1/10, n/30; b. 3/10, n/30; c. 3/10, n/60; d. 2/10, n/90Phillip F lamm's Computer Store in Texas sells a printer for $200. Demand is constant during the year, and annual demand is forecasted to be 600 units. Holding cost is $20 per unit per year, whereas the cost of ordering is $60 per order.Currently, the company is ordering 12 times per year (50 units each time). There are 250 working days per yea r, and the lead time is 10 days.a) Given the current policy of ordering 50 units at a time, what is the total of the annual ordering cost and the annual holding cost?b) If the company used the absolute best inventory policy, what would be the total of ordering and holding costs?c) What is the reorder point?
- A microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how much is delivered) and $1.20 per gallon. The annual holding cost is 35% of the price per gallon. Usage is 250 gallons/week. a) If the order quantity is 1000 gallons, what is the average inventory? b) If the order quantity is 1500 gallons, how many orders are placed each year? c) What is the EOQ quantity? d) If the order quantity is 2500 gallons, what is the sum of the ordering and holding costs PER GALLON? e) If orders are for the EOQ amount, what is the annual cost of the inventory system as a percentage of the annual purchase cost? f)If orders must be in integer multiples of 1000 gallons, how much should be ordered to minimize ordering and holding costs PER GALLON? g) A 3% purchase price discount is given if orders are for 8000 gallons or more. What would total annual costs (purchasing, ordering, and holding) be using this discount?A sport store carries a shoe for men that sells an approximately 3,049 pairs per year. The store purchases the shoes from the manufacturer for $30.2 per pair. The order lead time is 12 days. It costs the store $58 to place and process an order. The annual carrying charge is 24 percent. Assume EOQ model is appropriate and 360 days a year. If the store uses an order quantity of 276 units per order, what is the annual ordering cost? Use at least 4 decimal places.Customers at furniture store demand an average of 6,000 bookcases per year. Each time an order is placed, an ordering cost of $300 is incurred. The annual holding cost for a single desk is 25% of the $200 cost of a bookcase. Assume that the lead time to receive an order is one week. a) Each time an order is placed, how many bookcases should be ordered? b) What is the cycle time, T? c) How many orders should be placed each year? d) Determine the total annual costs of meeting the customers' demands for bookcases.
- An auto parts supplier sells batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The suppliers pays $28 for each battery and estimates that the annual holding cost is $8.40 per year. It costs approximately $20 to place an order. Assume a 250-day working year. a. Compute for the EOQ round off your answer to the nearest whole number. b. Compute for the expected number of orders. Round off your answer to the nearest whole number. c. Compute for the expected time between orders. Round off your answer to the nearest whole number.One of the bulk raw beverages, which Blanchard buys, is gin. Assume that the cost of purchasing enough raw gin for one case is $100. Each time they place an order their cost for processing the order is $20. The annual holding cost is 33% of item cost and demand for gin is 2500 cases per year. Calculate the EOQ for this product. If the lead-time is one day, what is the reorder point ROP? What is the annual total cost of this strategy? What is the average inventory? What is the inventory turnover? Please do fast ASAP fastSamaCell has a demand of 2,000 cells per year. The cost of each unit is $80, and the inventory carrying cost is $10 per unit per year. The average ordering cost is $30 per order. It takes about two days for an order to arrive and there are 250 working days per year. Round to two decimal places. a) What is the EOQ? units. b) What is the average inventory if the EOQ is used? units. c) What is the optimal number of orders per year? orders. d) What is the optimal number of days in between any two orders? days. e) What is the annual cost of ordering and holding inventory? USD. What is the reorder point (ROP)?
- You are thinking of opening a small copy shop. It costs $5500 to rent a copier for a year, and it costs $0.03 per copy to operate the copier. Other fixed costs of running the store will amount to $450 per month. You plan to charge an average of $0.10 per copy, and the store will be open 365 days per year. Each copier can make up to 100,000 copies per year. a) For a charge per copy between $0.07 to $0.11 and daily demands of 500, 1000, 1500, and 2000 copies per day, find annual profit. That is, find annual profit for eachof these combinations of charge per copy and daily demand. b) If you charge 0.09 per copy, what daily demand for copies will allow you to break even? c) Graph profit as a function for a charge per copy (between $0.07 to $0.11) for a daily demand of 500 copies; for a daily demand of 2000 copies. Interpret your graphs and label your graphs properlySuppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $100 per order, carrying costs are 5% of the inventory value, and the price is of $2.00 per box. The vendor now offers a quantity discount of 1% per box if the company buys pens in order sizes of 20,000 boxes. Should the company accept the quantity discount? Show your calculations to justify your decision.You have a food cart business that sells hotdogs for P25 each. The variable costs per hotdog are P10. Your fixed costs are currently P8,000 per month. You are considering expanding your business to three hotdog food carts which will increase fixed costs per month by P12,000.If you want to expand your business to three food carts, how many additional hotdogs will need to be sold per year in order to break-even?