During Christmas in Ghana the demand for children dresses at Takoradi mall is 500 units per month. Takoradi mall incurs a fixed order placement, transportation, and receiving cost of GHs 4,000 each time an order is placed. Each cycle costs GHS500 and the retailer has a holding cost of 20 percent. Calculate the number of dresses that the store manager should order in each replenishment lot? Discuss in detail the implications of this order on carrying and ordering cost
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- Rho Merchandising supplies T-shirts to AK Mart. Currently, Rho orders T-shirts from various suppliers. One of the T-shirts is ordered in batches of 150 units. It has been estimated that an annual demand for T-shirts is 25,000 pieces. Furthermore, carrying cost is estimated to be P10 per T-shirt per year. Determine the ordering cost.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.The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet. The annual carrying cost for a yard of this carpet is $0.75, and the ordering cost is $150. The carpet manufacturer normally charges the store $8 per yard for the carpet; however, the manufacturer has offered a discount price of $6.50 per yard if the store will order 5,000 yards. How much should the store order, and what will be the total annual inventory cost for that order quantity?
- Elyssa’s Elegant Eveningwear (EEE) needs to ship fi nishedgoods from its manufacturing facility to its distributionwarehouse. Annual demand for EEE is 2400 gowns. EEE canship the gowns via regular parcel service (3 days transit time),premium parcel service (1 day transit time), or via public carrier(7 days transit time). Calculate the average annual transportationinventory for each alternative.Demand for the Child Cycle at Best Buy is 9000 units per year. Best Buy incurs a fixed order placement, transportation, and receiving cost of OMR 48 each time an order is placed. Each cycle costs OMR 12 and the retailer has a holding cost of 20 %. Evaluate the number of cycles (EOQ) that the retailer should order and number of orders per year. a. 600 units and 15 orders b. 178.88 units and 10 orders c. 126.49 units and 15 orders d. 109.54 units and 10 ordersAapki Humaari Beauty LLP requires 12000 units of Bear Shampoo annually as a part of its sales requirement, ordering one month usage at a time. Each shampoo bottle costs Rs 100.The ordering cost per order is Rs 50 and the carrying cost of the average inventory on a yearly basis is 10% You as an adviser to the company advise to buy the most economical order size. a. The company looks forward for your advice on understanding the concept of economic order size. b. Advise what should be desired quantity as per the economic purchase policy of the company and how much the company may save on account of ordering cost. Note : You can round off any number to lower side for the calculation purpose
- Aapki Humaari Beauty LLP requires 12000 units of Bear Shampoo annually as a part of its sales requirement, ordering one month usage at a time. Each shampoo bottle costs Rs 100.The ordering cost per order is Rs 50 and the carrying cost of the average inventory on a yearly basis is 10% You as an adviser to the company advise to buy the most economical order size. The company looks forward for your advice on understanding the concept of economic order size with its conclusionA computer store sells two types of laptops, an all-purpose laptop and a gaming laptop. The supplier demands that at least 150 of these laptops be sold each month. Experience shows that most consumers prefer all-purpose laptops, but some younger consumers prefer gaming laptops. The result is that the number of all-purpose laptops sold is at least twice the number of gaming laptops sold. The store pays its sales staff a $52.86 commission for each all-purpose laptop sold and a $49.4 commission for each gaming laptop sold. How many of each type of laptop should be sold to minimize commission? What is that minimum monthly commission? All-purpose laptops: Gaming laptops: Commission (dollars): 000A grocery store orders frozen pies in batches from a bakery and sells them in the grocery store. Storing one frozen pie for a year costs $0.85. When the grocery store reorders pies, there is a fixed cost of $8.05 per order as well as $1.15 per pie. Each year, they sell 3500 frozen pies. What is the optimal number of pies to order in each order to minimize their total inventory costs.
- A local electronic repair shop uses 15,000 units of mobile batteries each year. It costs RO 30 to place and receive an order. It cost of material is RO 15 per unit and carrying cost is 24% of the cost per unit. Calculate the Economic Order Quantity for the shop, number of orders and total inventory costs. 2. Beta Merchandising Company purchases mobiles directly from manufacturers and sells it to small retailers. The following transactions occurred during 2020: March, 21st: 80 mobiles on hand @ RO 40 each. May, 14th: 120 mobiles purchased @ RO 50 each. July, 10th: 80 mobiles purchased @ RO 60 each. September 16th: 50 mobiles purchased @ 80 each Alpha merchandising sold 300 mobiles during 2020 Required: Compute the Cost of Inventory sold during 2020 and the value of closing inventory under the following cost inventory methods. (a). First in, first out (FIFO) (b). Last in, first out (LIFO) (c) Average cost methodA Store has annual demand of 29,000 units. The annual carrying cost for a unit is $15.5, and the ordering cost is $400. The supplier routinely charges the store $17 per unit. However, the supplier has offered a discount price of $15.5 per unit if the store will order 8,800 units. A How much should the store order? B.What will be the total annual inventory cost for that order quantity? DA The store should order 8,800 units. OB. The store should order 7,800 units. OC The total annual inventory cost for that order quantity is $420,175.12 DD. The total annual inventory cost for that order quantity is $511,963.12 OE. The total annual inventory cost for that order quantity is $519,018.18 DF. The store should order 1,223.4 units.Problem Solving: Lila Battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother’s hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of the forms used in placing the order, and so on. Furthermore, she estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent. Assume that the demand is constant throughout the year. a. How many number 6 screws should Lila order at a time if she wishes to minimize total inventory cost? b. How many orders per year would be placed? What would the annual ordering cost be? c. What would the average inventory be? What would the annual holding cost be?