Mall-o-Cars Inc. sells a number of automotive brands and provides service after the sale for those...

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Mall-o-Cars Inc. sells a number of automotive brands and provides service after the sale for those brands. Part X7B is used to repair water pumps. Each year, 10,000 units of Part X7B are used; they are currently purchased from external suppliers in lots of 1,000 units. It costs Mall-o-Cars $25 to place the order, and carrying cost is $2 per part per year. Required: 1. How many orders for Part X7B does Mall-o-Cars place per year? 2. What is the total ordering cost of Part X7B per year? 3. What is the total carrying cost of Part X7B per year? 4. What is the total cost of Mall-o-Cars' inventory policy for Part X7B per year? Mall-o-Cars Inc. sells a number of automotive brands and provides service after the sale for those brands. Part X7B is used to repair water pumps. Each year, 10,000 units of Part X7B are used; they are currently purchased from external suppliers in lots of 1,000 units. It costs Mall-o-Cars $25 to place the order, and carrying cost is $2 per part per year. Required: 1. How many orders for Part X7B does Mall-o-Cars place per year? 2. What is the total ordering cost of Part X7B per year? 3. What is the total carrying cost of Part X7B per year? 4. What is the total cost of Mall-o-Cars' inventory policy for Part X7B per year?

Answer rating: 100% (QA)

given Annual consumption of PART X7B 10000 units Order size 1000 units Cost per orde... View the full answer