EFG Company provided you that during the year there will be 50 deliveries of material H. The carrying cost per unit is P2.00 and the total ordering costs and carrying costs is P10,000. What is the annual volume requirement of material H?

EFG Company provided you that during the year there will be 50 deliveries of material H. The carrying cost per unit is P2.00 and the total ordering costs and carrying costs is P10,000. What is the annual volume requirement of material H?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

See similar textbooks

Related questions

Q: Explain : EOQ, Lead time, Economies of scale, Distribution center, Pallet

A: 1) EOQ: Economic Order Quantity- In order to minimize the costs of inventory, a company calculates…

Q: INVENTORY MANAGEMENT 6. Piped Piper has projected sales of 72,000 pipes this year, ordering cost of…

Q: Darren Company uses 36,000 yards of canvas each month to make tents. It usually takes four (4) days…

A: This question is related to the topic of Inventory Management and this topic falls under the…

Q: How may quantity vary and time remain fixed in case of continuous inventory review system?

A: What is Continuous Review System A system where the stock level of every item is determined each…

Q: (a) Assume that all ingredients are ordered independently. For each ingredient, determine the…

A: Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…

Q: Based on the records of ABC company, the annual demand for item HP26 has annual demand of 6,582…

A: Here, I have been given the following data, Annual demand=6582 units, The ordering cost per…

Q: What are the primary objectives of the Wilson approach, and how does it optimize inventory levels

A: The Wilson approach to supply chain management is a strategic method that focuses on creating a…

Q: PERIOD Gross 1 2 3 4 5 6 7 8 9 10 11 12 requirements 30 40 30 70 20 02 10 80 *Holding cost =…

A: Gross demand D = 30+40+30+70+20+10+80+50=330 Holding cost H = 2.50 Set up cost S = 150 EOQ = 2×D×SH…

Q: The following are data of materials inventory for the year 2020 of Mars Corp: Number of pounds…

A: The EOQ is a company's ideal order quantity that reduces overall expenses associated with ordering,…

Q: For a given product, the order placement cost is $5, the holding cost per unit per year is $10, and…

A: Note: - Since we can answer only up to three subparts we will answer the first three subparts(1, 2,…

Q: Krissy operates its factory 300 days per year. Its annual used of Material Y is 300,000 gallons. It…

A: Carrying cost is the total cost incurred to hold and store the inventory stock in the business.

Q: Joshua experience an annual demand of P 500,000 for electric drills at the JC Hardware Store. It…

A: To find: (a) The number of times the person J place an order an order in a year. (b) The number of…

Q: Compute the EOQ given the following information. The annual consumption is 6000 units, ordering cost…

A: Given Information: Annual consumption (D) = 6000 units Ordering cost (S) = RO 20 Carrying cost =…

Q: Explore the concept of Vendor-Managed Inventory (VMI) and its synergy with the Wilson approach.

A: Vendor-Managed Inventory (VMI) is supply chain management strategy in which supplier, rather than…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Barangay Punta Princesa is trying to decide between two alternative order plans for its inventory of face masks. Irrespective of the plan to be followed, demand for the item is expected to be 1,000 units annually. Under Plan A, Barangay Punta Princesa through their purchasing officer is using a digital platform for ordering: order costs would be Php 40 per order. Inventory holding costs (carrying costs) would be Php 100 per unit per annum. Under Plan B order costs would be Php 30 per order. And holding costs would 20% and unit cost is Php 480. Find out EOQ and Total Inventory cost, then come up with your decision which plan would result in the lowest total inventory cost?
Barangay Punta Princesa is trying to decide between two alternative order plans for its inventory of face masks. Irrespective of the plan to be followed, demand for the item is expected to be 1,000 units annually. Under Plan A, Barangay Punta Princesa through their purchasing officer is using a digital platform for ordering: order costs would be Php 40 per order. Inventory holding costs (carrying costs) would be Php 100 per unit per annum. Under Plan B order costs would be Php 30 per order. And holding costs would 20% and unit cost is Php 480. Find out EOQ and Total Inventory cost, then come up with your decision which plan would result in the lowest total inventory cost? can you answer this asap?
Describe that reorder point & lead time interrelated in inventory analysis in what way ?
NCY Corp has an annual usage ( of 5,000 units. The ordering cost is RM 200 per order while the carrying cost is RM 2 per unit. The company holds 17 units as safety stocks . It takes 7 days for the shipment to arrive. You are required to calculate EOQ, ROP, TOC and TCC of the company. ( Assume the working days is 360 days).
Ahmet Uslu experiences an annual demand of 220 000 MU for pro quality tennisballs at the İzmir Tennis Supply Company. It cost Ahmet 30 MU to place an order andhis carrying cost is 18%. How many orders per year should Ahmet place for the balls? Please mention formulas and do it in detail so I can understand.
Describe how in inventory analysis, the reorder point and lead time are related ?
Compare and contrast the fixed quantity and fixed interval versions of EOQ. In what contexts will each be appropriate?
Problem: 4 ABC Ltd uses EOQ to determine the order quantity for its various components and is planning its orders. The Annual Consumption is 80,000 units. Cost to place one order is RO 1200. Cost per unit is RO 50 and carrying cost is 6% of unit cost. Find A) EOQ B) Number of orders per year C) Ordering cost D) Carrying cost and E) The total cost of inventory
Describe how are reorder point & lead time interrelated in inventory analysis?
1. What is the economic order quantity for BBE in units? In pounds? 4.What is the total cost for using air carrier transportation?
Explain : EOQ, Lead time, Economies of scale, Distribution center, Pallet.