A manufacturer has a productionfacility that requires 14,979 units ofcomponent JY21 per year. Following along-term contract, the manufacturerpurchases component JY21 from asupplier with a lead time of 14 days.The unit purchase cost is $27 per unit.The cost to place and process an orderfrom the supplier is $172 per order.The unit inventory carrying cost peryear is 17 percent of the unit purchasecost. The manufacturer operates 250days a year. Assume EOQ model isappropriate. What is the optimal lengthof inventory cycle in days?Use at least 4 decimal places.

Name: A manufacturer has a productionfacility that requires 14,979 units of
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Description: A manufacturer has a productionfacility that requires 14,979 units ofcomponent JY21 per year. Following along-term contract, the manufacturerpurchases component JY21 from asupplier with a lead time of 14 days.The unit purchase cost is $27 per unit.T

Economic Order Quantity=(2*Annual Demand*Cost of placing 1 order/Cost of handing per unit per…

Answered: appropriate. of inventory What is the…

Business

Accounting

appropriate. of inventory What is the optimal length cycle in days?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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