1- Bernard Callebaut operates a chocolate shop in Kensington. The annual demand for chocolate-covered cherries is...
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1- Bernard Callebaut operates a chocolate shop in Kensington. The annual demand for chocolate-covered cherries is 2,500 units. The setup cost is $15 per order. The holding cost per unit per year is $0.25. a) What is the optimum number of units per order? b) What is the expected number of orders per year? c) Assuming a 250 day working year, what is the expected time between orders? d) What are the total annual inventory costs? e) What is the minimum inventory level? f) What is the maximum inventory level? g) What is the average inventory level? 1- Bernard Callebaut operates a chocolate shop in Kensington. The annual demand for chocolate-covered cherries is 2,500 units. The setup cost is $15 per order. The holding cost per unit per year is $0.25. a) What is the optimum number of units per order? b) What is the expected number of orders per year? c) Assuming a 250 day working year, what is the expected time between orders? d) What are the total annual inventory costs? e) What is the minimum inventory level? f) What is the maximum inventory level? g) What is the average inventory level?
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To calculate the optimum order quantity and other related inventory parameters we can use the Econom... View the full answer
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
Posted Date:
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