The economic order quantity for Fisk corp. Introduction: E conomic Order Q uantity (EOQ): The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

Question

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Answer 1

Question

Chapter 7, Problem 14P

a.

Summary Introduction

To calculate: The economic order quantity for Fisk corp.

Introduction:

Economic Order Quantity (EOQ):

The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

b.

Summary Introduction

To calculate: The number of orders placed during the year for Fisk corp.

Introduction:

Number of Orders Placed:

The number of orders placed is the number of units sold during the year by the firm. It is the demand by the target customers.

c.

Summary Introduction

To calculate:The average inventory for Fisk corp.

Introduction:

Average inventory:

Average inventory is the value of inventory held with the firm for more than a specific time period. It can be calculated as the value of inventory for both the time periods divided by the number of time periods.

d.

Summary Introduction

To calculate:The total cost of ordering and the carrying cost of inventory for Fisk corp.

Introduction:

Total cost:

Total cost is the cost of all the units produced by the company. It includes all the variable and fixed costs. It is the sum of the variable and fixed costs incurred by the firm.

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Students have asked these similar questions

Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order, and carrying costs of P2.40 per pipe. With the given data, can you give me the solution on how to get: -What is the economic ordering quantity? -Total inventory cost at EOQ -How many orders will be placed during the year?-What will the average inventory be? Thank you in advance.

Suppose Big Box Office Supply (BBOS) purchases 100,000 office chairs every year. Ordering costs are $95.00 per order and carrying costs are $4.95 per chair. What is BBOS’s total inventory cost per year, including both carrying costs and ordering costs, if BBOS orders the EOQ of office chairs?

Ekor bakery sells doughnut. The annual demand is 10,000 per year. The ordering cost is $21, and holding cost is $3. If the demand exceeds the inventory, Ekor has two types of costs associated with the backorder. The loss of goodwill is $O.1 per unit short, and a "bookkeeping" cost of $0.3 per unit short per year. Calculate: economic order quantity, maximum acceptable inventory, cycle time, and minimal total annual average cost. Suppose the doughnuts are sold in packages of 150 units each. How many packages should sell? (Hint: Sensitivity of EOQ).

Answer 2

Question

Chapter 7, Problem 14P

a.

Summary Introduction

To calculate: The economic order quantity for Fisk corp.

Introduction:

Economic Order Quantity (EOQ):

The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

b.

Summary Introduction

To calculate: The number of orders placed during the year for Fisk corp.

Introduction:

Number of Orders Placed:

The number of orders placed is the number of units sold during the year by the firm. It is the demand by the target customers.

c.

Summary Introduction

To calculate:The average inventory for Fisk corp.

Introduction:

Average inventory:

Average inventory is the value of inventory held with the firm for more than a specific time period. It can be calculated as the value of inventory for both the time periods divided by the number of time periods.

d.

Summary Introduction

To calculate:The total cost of ordering and the carrying cost of inventory for Fisk corp.

Introduction:

Total cost:

Total cost is the cost of all the units produced by the company. It includes all the variable and fixed costs. It is the sum of the variable and fixed costs incurred by the firm.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 7, Problem 14P

a.

Summary Introduction

To calculate: The economic order quantity for Fisk corp.

Introduction:

Economic Order Quantity (EOQ):

The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

b.

Summary Introduction

To calculate: The number of orders placed during the year for Fisk corp.

Introduction:

Number of Orders Placed:

The number of orders placed is the number of units sold during the year by the firm. It is the demand by the target customers.

c.

Summary Introduction

To calculate:The average inventory for Fisk corp.

Introduction:

Average inventory:

Average inventory is the value of inventory held with the firm for more than a specific time period. It can be calculated as the value of inventory for both the time periods divided by the number of time periods.

d.

Summary Introduction

To calculate:The total cost of ordering and the carrying cost of inventory for Fisk corp.

Introduction:

Total cost:

Total cost is the cost of all the units produced by the company. It includes all the variable and fixed costs. It is the sum of the variable and fixed costs incurred by the firm.

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 14P

a.

Summary Introduction

To calculate: The economic order quantity for Fisk corp.

Introduction:

Economic Order Quantity (EOQ):

The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

b.

Summary Introduction

To calculate: The number of orders placed during the year for Fisk corp.

Introduction:

Number of Orders Placed:

The number of orders placed is the number of units sold during the year by the firm. It is the demand by the target customers.

c.

Summary Introduction

To calculate:The average inventory for Fisk corp.

Introduction:

Average inventory:

Average inventory is the value of inventory held with the firm for more than a specific time period. It can be calculated as the value of inventory for both the time periods divided by the number of time periods.

d.

Summary Introduction

To calculate:The total cost of ordering and the carrying cost of inventory for Fisk corp.

Introduction:

Total cost:

Total cost is the cost of all the units produced by the company. It includes all the variable and fixed costs. It is the sum of the variable and fixed costs incurred by the firm.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 14P

a.

Summary Introduction

To calculate: The economic order quantity for Fisk corp.

Introduction:

Economic Order Quantity (EOQ):

The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

b.

Summary Introduction

To calculate: The number of orders placed during the year for Fisk corp.

Introduction:

Number of Orders Placed:

The number of orders placed is the number of units sold during the year by the firm. It is the demand by the target customers.

c.

Summary Introduction

To calculate:The average inventory for Fisk corp.

Introduction:

Average inventory:

Average inventory is the value of inventory held with the firm for more than a specific time period. It can be calculated as the value of inventory for both the time periods divided by the number of time periods.

d.

Summary Introduction

To calculate:The total cost of ordering and the carrying cost of inventory for Fisk corp.

Introduction:

Total cost:

Total cost is the cost of all the units produced by the company. It includes all the variable and fixed costs. It is the sum of the variable and fixed costs incurred by the firm.

Answer 6

Chapter 7, Problem 14P

a.

Summary Introduction

To calculate: The economic order quantity for Fisk corp.

Introduction:

Economic Order Quantity (EOQ):

The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

Answer 7

Chapter 7, Problem 14P

a.

Summary Introduction

To calculate: The economic order quantity for Fisk corp.

Introduction:

Economic Order Quantity (EOQ):

The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

Answer 8

b.

Summary Introduction

To calculate: The number of orders placed during the year for Fisk corp.

Introduction:

Number of Orders Placed:

The number of orders placed is the number of units sold during the year by the firm. It is the demand by the target customers.

Answer 9

b.

Summary Introduction

To calculate: The number of orders placed during the year for Fisk corp.

Introduction:

Number of Orders Placed:

The number of orders placed is the number of units sold during the year by the firm. It is the demand by the target customers.

Answer 10

c.

Summary Introduction

To calculate:The average inventory for Fisk corp.

Introduction:

Average inventory:

Average inventory is the value of inventory held with the firm for more than a specific time period. It can be calculated as the value of inventory for both the time periods divided by the number of time periods.

Answer 11

c.

Summary Introduction

To calculate:The average inventory for Fisk corp.

Introduction:

Average inventory:

Average inventory is the value of inventory held with the firm for more than a specific time period. It can be calculated as the value of inventory for both the time periods divided by the number of time periods.

Answer 12

d.

Summary Introduction

To calculate:The total cost of ordering and the carrying cost of inventory for Fisk corp.

Introduction:

Total cost:

Total cost is the cost of all the units produced by the company. It includes all the variable and fixed costs. It is the sum of the variable and fixed costs incurred by the firm.

Answer 13

d.

Summary Introduction

To calculate:The total cost of ordering and the carrying cost of inventory for Fisk corp.

Introduction:

Total cost:

Total cost is the cost of all the units produced by the company. It includes all the variable and fixed costs. It is the sum of the variable and fixed costs incurred by the firm.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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The economic order quantity for Fisk corp. Introduction: E conomic Order Q uantity (EOQ): The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

Solution Summary: The author explains how to calculate the economic order quantity for Fisk corp. and the number of orders placed for the year.

To calculate: The economic order quantity for Fisk corp.

Introduction:

Economic Order Quantity (EOQ):

The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

To calculate: The number of orders placed during the year for Fisk corp.

Introduction:

Number of Orders Placed:

The number of orders placed is the number of units sold during the year by the firm. It is the demand by the target customers.

To calculate:The average inventory for Fisk corp.

Introduction:

Average inventory:

Average inventory is the value of inventory held with the firm for more than a specific time period. It can be calculated as the value of inventory for both the time periods divided by the number of time periods.

To calculate:The total cost of ordering and the carrying cost of inventory for Fisk corp.

Introduction:

Total cost:

Total cost is the cost of all the units produced by the company. It includes all the variable and fixed costs. It is the sum of the variable and fixed costs incurred by the firm.

Want to see the full answer?

Chapter 7 Solutions

The economic order quantity for Fisk corp. Introduction: E conomic Order Q uantity (EOQ): The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

Solution Summary: The author explains how to calculate the economic order quantity for Fisk corp. and the number of orders placed for the year.

To calculate: The economic order quantity for Fisk corp. Introduction: Economic Order Quantity (EOQ): The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

To calculate: The number of orders placed during the year for Fisk corp. Introduction: Number of Orders Placed: The number of orders placed is the number of units sold during the year by the firm. It is the demand by the target customers.

To calculate:The average inventory for Fisk corp. Introduction: Average inventory: Average inventory is the value of inventory held with the firm for more than a specific time period. It can be calculated as the value of inventory for both the time periods divided by the number of time periods.

To calculate:The total cost of ordering and the carrying cost of inventory for Fisk corp. Introduction: Total cost: Total cost is the cost of all the units produced by the company. It includes all the variable and fixed costs. It is the sum of the variable and fixed costs incurred by the firm.

Want to see the full answer?

Chapter 7 Solutions

To calculate: The economic order quantity for Fisk corp.

Introduction:

Economic Order Quantity (EOQ):

The economic order quantity is the ideal quantity produced by a firm that minimizes the total variable and fixed costs of production. It is also known as optimum lot size.

To calculate: The number of orders placed during the year for Fisk corp.

Introduction:

Number of Orders Placed:

The number of orders placed is the number of units sold during the year by the firm. It is the demand by the target customers.

To calculate:The average inventory for Fisk corp.

Introduction:

Average inventory:

Average inventory is the value of inventory held with the firm for more than a specific time period. It can be calculated as the value of inventory for both the time periods divided by the number of time periods.

To calculate:The total cost of ordering and the carrying cost of inventory for Fisk corp.

Introduction:

Total cost:

Total cost is the cost of all the units produced by the company. It includes all the variable and fixed costs. It is the sum of the variable and fixed costs incurred by the firm.