Harmen co. uses 8400 pounds of chemical annually, estimates the holding cost to be 40% of the purchase price (because of spoilage), and estimates order costs to be $24 per order. The supplier need 7 working days to deliver. The cost schedules of two suppliers are as follows: Vendor 1 Vendor 2 Quantity Price/lb Quantity Price/lb 1-250 $16.00 1-200 $16.20 251-300 $15.75 201-300 $15.8 301 + $15.60 301-400 $15.65 401+ $15.5 How many to order and when to order? Assumed that there's 300 working day a year, what is the average time between orders?

Harmen co. uses 8400 pounds of chemical annually, estimates the holding cost to be 40% of the purchase price (because of spoilage), and estimates order costs to be $24 per order. The supplier need 7 working days to deliver. The cost schedules of two suppliers are as follows: Vendor 1 Vendor 2 Quantity Price/lb Quantity Price/lb 1-250 $16.00 1-200 $16.20 251-300 $15.75 201-300 $15.8 301 + $15.60 301-400 $15.65 401+ $15.5 How many to order and when to order? Assumed that there's 300 working day a year, what is the average time between orders?

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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