COST FACTOR COST (S) COST FACTOR COST (S) 280 hur Warehouse supplies Taxes for the warehouse 2,000 Research and Receiving and incoming inspection 1,500 2,750 development 2,500 Purchasing salaries & 30,000 New product development wages Warehouse salaries 12,800 Acct. Dept. costs to pay invoices 500 & wages Inventory insurance Product advertising 600 Pilferage of inventory 800 800 Purchase order 500 supplies Inventory obsolescence 300 Spoilage Sending purchasing orders 750 800 Purchasing Dept. overhead 1,000
COST FACTOR COST (S) COST FACTOR COST (S) 280 hur Warehouse supplies Taxes for the warehouse 2,000 Research and Receiving and incoming inspection 1,500 2,750 development 2,500 Purchasing salaries & 30,000 New product development wages Warehouse salaries 12,800 Acct. Dept. costs to pay invoices 500 & wages Inventory insurance Product advertising 600 Pilferage of inventory 800 800 Purchase order 500 supplies Inventory obsolescence 300 Spoilage Sending purchasing orders 750 800 Purchasing Dept. overhead 1,000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Cheryl Druehl has asked you to help her determine the best ordering policy for a new product. The demand for the new product has been To help you get a handle on the carrying and ordering costs, Cheryl has given you the list of last year's costs. She thought that these costs might be appropriate for the new product. She also told you that these data were compiled for 10,000 inventory items that were carried or held during the year. You have also determined that 200 orders were placed last year. Your job as a new opera tions management graduate is to help Cheryl determine the economic order quantity for the new product. |
![COST FACTOR
COST (S) COST FACTOR
COST (S)
280
hur
Warehouse supplies
Taxes for the
warehouse
2,000
Research and
Receiving and
incoming inspection
1,500
2,750
development
2,500
Purchasing salaries &
30,000
New product
development
wages
Warehouse salaries
12,800
Acct. Dept. costs to
pay invoices
500
& wages
Inventory insurance
Product advertising
600
Pilferage of inventory
800
800
Purchase order
500
supplies
Inventory obsolescence
300
Spoilage
Sending purchasing
orders
750
800
Purchasing Dept.
overhead
1,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae5f455f-ed41-4ba4-8168-840977969e87%2Fcf8f0f2e-c5af-4e66-8fee-081de3768d22%2Fbgc891b_processed.png&w=3840&q=75)
Transcribed Image Text:COST FACTOR
COST (S) COST FACTOR
COST (S)
280
hur
Warehouse supplies
Taxes for the
warehouse
2,000
Research and
Receiving and
incoming inspection
1,500
2,750
development
2,500
Purchasing salaries &
30,000
New product
development
wages
Warehouse salaries
12,800
Acct. Dept. costs to
pay invoices
500
& wages
Inventory insurance
Product advertising
600
Pilferage of inventory
800
800
Purchase order
500
supplies
Inventory obsolescence
300
Spoilage
Sending purchasing
orders
750
800
Purchasing Dept.
overhead
1,000
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