Lag Na Naman Company has an order point at 1,400 units, usage during normal lead time of 600 units, and an EOQ of 2,000 units. Its maximum inventory, assuming normal lead time and usage, would be
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Lag Na Naman Company has an order point at 1,400 units, usage during normal lead time of 600 units, and an EOQ of 2,000 units. Its maximum inventory, assuming normal lead time and usage, would be:
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- A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%.Calculate the following:a. The EOQ in dollars.b. Number of orders per year.c. Cost of ordering, cost of carrying inventory, and total cost.d. How do the costs of carrying inventory compare with the costs of ordering?An organization implements a constant order quantity inventory system. The setup (procurement) cost per transaction: $58 The annual demand in units: 2500 The cost of each inventory unit: $10 The annual holding cost as a percentage of unit inventory cost: 30% Determine the optimal order quantity rounded to the nearest whole unit.The following data relates to component L512: Ordering costs $100 per order Inventory holding costs $8 per unit per annum Annual demand 1,225 units What is the economic order quantity (to the nearest whole unit)?
- The annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item has a value of P5,000. Ordering cost is P50.00. Carrying cost is 20% of average inventory. Find the following: a. Optimal number of order per year b. Economic order quantity c. Annual carrying cost d. Annual Ordering cost e. Total annual inventory costA company’s ordering cost is sh 25 and the holding cost is 10% of average inventory. Given that the total cost is shs. 750, find the demandCompute for EOQ for Company with Annual Usage of 32,000 units in 360 working days, Ordering cost of P1,200 every order and carrying cost of P1.50 per unit. How much is the Annual Carrying Cost? How much is the Annual Ordering Cost? How much is the Total Inventory Cost?
- The order cost per order of an inventory is OMR. 60 with an annual carrying cost of OMR. 4 per unit. The annual demand is 12000 units. Calculate: Economic Ordering Quantity, Number of Orders per year and Ordering cost per year. a. 500 units, 20 Orders and 1200 OMR b. 480 units, 20 Orders and 1500 OMR c. 400 units, 20 Orders and 1800 OMR d. 600 units, 20 Orders and 1200 OMRThe annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item has a value of P5,000. Ordering cost is P50.00. Carrying cost is 20% of average inventory. a. Optimal number of order per year b. Economic order quantity c. Annual carrying cost d. Annual Ordering cost e. Total annual inventory costAn organization has an inventory order quantity of 20,000 units and a safety stock of 4,000 units. The cost per unit of inventory is P20, and the carrying cost is 10% of the average value of inventory. The annual inventory carrying cost for the organization is
- Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,100 and total carrying cost is $1,100. Which of the following statements is true? The economic order quantity (EOQ) is 250. The economic order quantity (EOQ) is less than 250. Total inventory-related cost is lower than it would be at the economic order quantity (EOQ). The economic order quantity (EOQ) is more than 250.Octopus Company provides you with the following information regarding its inventory: Maximum lead time 5 weeks Minimum lead time 2 weeks Normal lead time 3 weeks Normal weekly usage 4 000 units Interest rate 5% Cost price per unit R20 per unit Inventory carrying cost R7 per unit Ordering cost R30 per order Maximum weekly usage 4 000 units Minimum weekly usage 3 000 units Required: a).Calculate EOQ b). safety stock c). total ordering costThe following data relates to component L512: Ordering costs $100 per order Inventory holding costs $8 per unit per annum Annual demand 1,225 units What is the economic order quantity (to the nearest whole unit)? A 175 units B 62 units C 44 units D 124 units