Chavez Chemical Inc. requires 20,000 gallons of material annu- ally; the cost of placing an order is
Question:
Chavez Chemical Inc. requires 20,000 gallons of material annu- ally; the cost of placing an order is $20; the annual carrying cost per gallon is $5.
Required:
Determine the EOQ from potential order sizes of 300, 400, 500, 600, 700, and 800 gallons by constructing a table similar to the one appearing on page71.
Transcribed Image Text:
Order Number of Total Size Ave Total Carrying Total Order8 Orders Order Cost Inventory $1,000 Carrying Cost $1,040 100 100 S 40 100 300 150 120 25 410 400 410 160 500 170 140 800 110 470 1,000 10 100 500 500
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 88% (9 reviews)
Order Size Number of Orders Total Order Cost Average Inventory Total Carrying ...View the full answer
Answered By
Fahmin Arakkal
Tutoring and Contributing expert question and answers to teachers and students.
Primarily oversees the Heat and Mass Transfer contents presented on websites and blogs.
Responsible for Creating, Editing, Updating all contents related Chemical Engineering in
latex language
4.40+
8+ Reviews
22+ Question Solved
Related Book For
Question Posted:
Students also viewed these Cost Accounting questions
-
A retailer estimates her fixed cost for placing an order at $ 1,000. Currently, she orders in optimal quantities of 400 units. She has, however, heard of the benefits of just- in- time purchasing a...
-
A chemist would like to monitor the progress of a chemical reaction using UV/V is spectroscopy. The spectrum for the starting material (solid line) and the product (dashed line) are given. At what...
-
a. Construct a table similar to Table 6.2, showing all possible outcomes of tossing four coins at once. b. Construct a table similar to Table 6.3, showing the probability distribution for the events...
-
Kellogg Company is expected to pay $2.00 in annual dividends to its common shareholders in the future. Our best estimate of the expected cost of equity capital is 5.0% and the expected growth rate in...
-
sin(2). Simplify the answer in terms of cos(2). Use the angle addition formulas (Equations 2.10.1 and 2.10.2) to expand the following and use the product and sum rules to compute the derivatives of...
-
Based on the information presented in the minicase, how would you characterize PSINet CEO William Schraders susceptibility to psychological phenomena? Discuss the extent to which PSINets financing...
-
Imagine you were called in by the government to advise on whether it should attempt to prevent cyclical fluctuations by the use of fiscal policy. What advice would you give and how would you justify...
-
Eli Lilly is very excited because sales for his nursery and Plant Company are expected to double from $600,000 to $1,200,000 next year. Eli notes that net assets (Assets Liabilities) will remain at...
-
Identify the five types of lymphocytes (white blood cells) in the following histological images, and provide a brief summary of each of their functions. (a) RBC RBC O (b) RBC RBC (d) (e) RBC (c)
-
You meet with your client Sonya and throughout your discussion, you realize that Sonya is struggling financially. You recommend that Sonya apply for the guaranteed income supplement (GIS). Which of...
-
Starr Co. predicts it will use 63,000 units of material during the year. The expected daily usage is 500 units, and there is an expected lead time of five days and a desired safety stock of 1,500...
-
Spillane's Specialty Clothing Inc. uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of November 1, follows: Cash . . . . . . . . ....
-
Show that the following function satisfies the properties of a joint probability mass function: Determine the following: (a) P(X <0.5, Y <1.5) (b) P(X ¤ 1) (c) P(X <1.5) (d) P(X >0.5, Y <1.5)...
-
What is the yield on zero-coupon bond that sold for $651.50 (at time zero), that has a 10-year term, a 0% coupon rate with no interest payments (just reminding you what a zero-coupon bond is!), and a...
-
2. Prepare a brief job-order cost sheet for the four jobs. Show the balance as of June 1 as well as direct materials and direct labor added in June. Apply overhead to the four jobs for the month of...
-
TaxPlus, Inc. is a tax preparation service company providing tax services to 750 clients annually. Each tax preparer is paid $150 per prepared return, and charges each client $375 for the...
-
Discuss the importance of psychological contracting to change management. What is the relationship of psychological contracting to employee empowerment? What is the role of employee empowerment to...
-
Discuss the issues of employee's empowerment, their training needs, suggestions and other issues related to it. Total quality management (TQM) is a management technique adopted by the most...
-
What are the main components of measuring GDP with what is produced?
-
Select a mass spectrometric technique with the highest mass resolution for identifying an unknown compound being eluted from a liquid chromatography column
-
What are the steps basic for designing output?
-
Why is it usually reasonable to assume that labor and factory overhead are added evenly throughout the production process?
-
If materials are not put into process uniformly, what must be considered when determining the cost of the ending work in process?
-
In what way does the cost of production summary, Figure 6-2, differ from the cost of production summaries presented in Chapter 5? What is the reason for this difference in treatment?
-
1. Consider a firm whose stock price at the end of the year depends on the state of the economy (good or bad with equal probability) and the outcome of a lawsuit (win with probability 0.8 and lost...
-
9) Consider a square matrix A such that ATA. One learner told me that the following three vectors are the eigenvectors of this matrix A. --10-8-4 Is learner telling the truth? Yes No 2 Can't say...
-
A very well known furniture retailer frequently advertises "no money down and no interest until 2006!" You want to buy some furniture now, and have a bit of spare cash available. You go to the store...
Study smarter with the SolutionInn App