Dhaya Maju Company is a medical glove production company. The company can produce medical gloves with the
Question:
Dhaya Maju Company is a medical glove production company. The company can produce medical gloves with the following information: 1. The annual demand is 4,500,000 units. 2. The carrying cost is RM0.50 per unit; 3. The price of a medical glove is RM1.50; 4. The ordering cost is RM2,000 per order; 5. The desired safety stock level 120,000 units; 6. The delivery time is 10 days. Given the above information: a) Determine the optimal EOQ level. b) How many orders will be placed annually? c) What is the inventory order point? (Assumed 365 days). d) What is the average inventory level? e) How much does the total annual inventory cost? f) Prepare a graph to shows your order point determination.
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson