The economic order quantity.

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Answer 1

Question

Chapter 12, Problem 35P

a)

Summary Introduction

To determine: The economic order quantity.

b)

Summary Introduction

To determine: The average inventory.

c)

Summary Introduction

To determine: The optimal number of orders per year.

d)

Summary Introduction

To determine: The optimal number of working days between orders.

e)

Summary Introduction

To determine: The total inventory cost.

f)

Summary Introduction

To determine: The reorder point.

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Students have asked these similar questions

The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. If the order size was 1,000 kilograms of resin, what would be the average inventory level?

Fisk Corporation is trying to improve its inventory control system and has installed an online system at its retail stores. Fisk anticipates sales of 58,800 units per year, an ordering cost of $4 per order, and carrying costs of $1.50 per unit. In the second year, Fisk Corporation finds that it can reduce ordering costs to $1 per order, but carrying costs will stay the same at $1.50 per unit. a-1. What is the economic ordering quantity for the second year? Economic ordering quantity (EOQ) a-2. How many orders will be placed during the second year? Number of orders a-3. What will the average inventory be for the second year? Average inventory Total costs units units a-4. What is the total cost of ordering and carrying inventory for second year? LA

Question 1 For supply item ABC, Andrews Company has been ordering 400 units per week. A new purchasing agent has been hired by the company who wants to start using the economic-order- quantity method and its supporting decision elements. She has gathered the following information: Annual demand in units Lead time, in days Ordering costs Insurance and handling costs Purchase price per unit Return on cash investment 20,800 5 $22 $7 $15 15% Required

Answer 2

Question

Chapter 12, Problem 35P

a)

Summary Introduction

To determine: The economic order quantity.

b)

Summary Introduction

To determine: The average inventory.

c)

Summary Introduction

To determine: The optimal number of orders per year.

d)

Summary Introduction

To determine: The optimal number of working days between orders.

e)

Summary Introduction

To determine: The total inventory cost.

f)

Summary Introduction

To determine: The reorder point.

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Answer 3

Question

Chapter 12, Problem 35P

a)

Summary Introduction

To determine: The economic order quantity.

b)

Summary Introduction

To determine: The average inventory.

c)

Summary Introduction

To determine: The optimal number of orders per year.

d)

Summary Introduction

To determine: The optimal number of working days between orders.

e)

Summary Introduction

To determine: The total inventory cost.

f)

Summary Introduction

To determine: The reorder point.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 35P

a)

Summary Introduction

To determine: The economic order quantity.

b)

Summary Introduction

To determine: The average inventory.

c)

Summary Introduction

To determine: The optimal number of orders per year.

d)

Summary Introduction

To determine: The optimal number of working days between orders.

e)

Summary Introduction

To determine: The total inventory cost.

f)

Summary Introduction

To determine: The reorder point.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 35P

a)

Summary Introduction

To determine: The economic order quantity.

b)

Summary Introduction

To determine: The average inventory.

c)

Summary Introduction

To determine: The optimal number of orders per year.

d)

Summary Introduction

To determine: The optimal number of working days between orders.

e)

Summary Introduction

To determine: The total inventory cost.

f)

Summary Introduction

To determine: The reorder point.

Answer 6

Chapter 12, Problem 35P

a)

Summary Introduction

To determine: The economic order quantity.

Answer 7

Chapter 12, Problem 35P

a)

Summary Introduction

To determine: The economic order quantity.

Answer 8

b)

Summary Introduction

To determine: The average inventory.

Answer 9

b)

Summary Introduction

To determine: The average inventory.

Answer 10

c)

Summary Introduction

To determine: The optimal number of orders per year.

Answer 11

c)

Summary Introduction

To determine: The optimal number of orders per year.

Answer 12

d)

Summary Introduction

To determine: The optimal number of working days between orders.

Answer 13

d)

Summary Introduction

To determine: The optimal number of working days between orders.

Answer 14

e)

Summary Introduction

To determine: The total inventory cost.

Answer 15

e)

Summary Introduction

To determine: The total inventory cost.

Answer 16

f)

Summary Introduction

To determine: The reorder point.

Answer 17

f)

Summary Introduction

To determine: The reorder point.

Answer 18

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Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

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The economic order quantity.

Solution Summary: The author explains how to determine the economic order quantity and the optimal number of orders per year.

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To determine: The economic order quantity.

To determine: The average inventory.

To determine: The optimal number of orders per year.

To determine: The optimal number of working days between orders.

To determine: The total inventory cost.

To determine: The reorder point.

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Chapter 12 Solutions