Question 10.7 The Megagate Company is a restaurant supplier which sells a number of products to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 10.7 The Megagate Company is a restaurant supplier which sells a number of products to various restaurants in the area. One of their products is a special meat cutter with disposable blade The blades are sold in packages of 12 blades for N1,600. After a number of years it has been determined that the demand for the replacement blades is at a constant rate of 2,000 packages per month. The packages cost the Megagate Company N800 each from the manufacturer and require a three-day lead-time from date of order to date of delivery. The ordering cost is N96 per order and the carrying cost is 10 per cent annum. a) Calculate: [i] The economic order quantity [ii] The number of orders needed per year. [iii] The total cost of buying and carrying blades for the year. (9 Marks) Assuming that there is no Safety Stock and that the present inventory level is 200 packages, when should the next order is placed? (Use 360 days for one year) (3 Marks) b) L Discuss the problems that most firms would have in attempting to apply this model to ICAN (May 2004) MA their inventory problems. (2 Marks) (Total 14 Marks) Question 10.7 The Megagate Company is a restaurant supplier which sells a number of products to various restaurants in the area. One of their products is a special meat cutter with disposable blade The blades are sold in packages of 12 blades for N1,600. After a number of years it has been determined that the demand for the replacement blades is at a constant rate of 2,000 packages per month. The packages cost the Megagate Company N800 each from the manufacturer and require a three-day lead-time from date of order to date of delivery. The ordering cost is N96 per order and the carrying cost is 10 per cent annum. a) Calculate: [i] The economic order quantity [ii] The number of orders needed per year. [iii] The total cost of buying and carrying blades for the year. (9 Marks) Assuming that there is no Safety Stock and that the present inventory level is 200 packages, when should the next order is placed? (Use 360 days for one year) (3 Marks) b) L Discuss the problems that most firms would have in attempting to apply this model to ICAN (May 2004) MA their inventory problems. (2 Marks) (Total 14 Marks)
Expert Answer:
Answer rating: 100% (QA)
a i Economic Order Quantity EOQ EOQ 2AOQC Where A Annual demand 2000 packagesmonth 12 months 24000 p... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Settler Company sells a number of products to many restaurants in the area. One product is a special meat cutter with a disposable blade. Blades are sold in a package of 12 at $20 per package. It has...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
(d) Consider a straight wire of length 1, and cross sectional area A, carrying a current I, in a uniform magnetic field B. The angle between the direction of current flow and the magnetic field is 0....
-
Would you predict that a person with a strong agreeableness personality dimension would be a successful computer programmer? Why or why not? (Slide 2-13)
-
A new type of porous material serves as food packaging film, as shown in the figure below. The film rests on a nonporous metal plate. The packaging film is 0.20 cm thick (2.0 mm). The food contains...
-
Suppose Emory is offered a true tax lease for the printing press at a lease rate of $11,700 per year. Show that this lease is profitable for Emory as well as for a lessor with a 10% tax rate and an...
-
1. You should develop an Excel optimization model to find the optimal strategy. This strategy should specify the number of each type of ac-count (0-due, 1-due, 2-due, 3-due) that should receive each...
-
The definition, " ' Chiropractor ' means a person who is a medical quack with no legitimate scientific background," is an example of: Theoretical definition Definition by subclass Persuasive...
-
Mutually exclusive projects Fitch Industries is in the process of choosing the better of two equal-risk, mutually exclusive capital expenditure projects, M and N. The relevant cash flows for each...
-
A new hotel has been opened in Downtown USA for approximately one year. The hotel is located in the main business district of the downtown area, which is thriving and growing. Several new businesses...
-
What is true of Least Squares Regression properties? A. The sum of squared residuals is the maximum B. The sum of the residuals from the least squares regression line is 0 C. Residual is the...
-
I once heard that lightning goes upward from the ground to clouds. Let's investigate to figure out if that makes sense, starting with one fact, and figuring out the rest from there. The fact is that...
-
The Green Action Centre doesn't like it. Poletical doesn't like it. Many are not thrilled with the Tim Hortons Roll up the Rim (RUTR) sales promotion (find many similar sites with a quick Google...
-
Per my response in the Leadership Toolkit assignment, I believe that the leadership skills and behaviors identified align with the employee satisfaction survey. The suggested leadership skills and...
-
3. Move the tub away from the electroscope. What happens now? Explain why it's happening. (6 pts) 4. In the previous steps, you noticed an effect on the electroscope leaves without touching the...
-
Wilson Johnson, a childhood, friend has asked you to assist with his personal finances. Single and 30 years old, he is employed as an accountant with a technology company. Wilson has moved from a...
-
The cash records of Holly Company show the following four situations. 1. The June 30 bank reconciliation indicated that deposits in transit total $720. During July, the general ledger account Cash...
-
What is a producing department? A service department? Give illustrations of each.
-
Double-0 Corporation is considering the purchase of a replacement machine. The new machine is priced at $64,000. However, the vendor has offered Double-0 a $10,000 trade-in allowance for the old...
-
What is MADM, and in what way is it useful?
-
We will use the Minitab macro PoisGCP, or the \(\mathrm{R}\) function poisgcp, to nd the posterior when we have a random sample from a Poisson( ) distribution and general continuous prior. Suppose we...
-
You are the statistician responsible for quality standards at a cheese factory. You want the probability that a randomly chosen block of cheese labelled \(1 \mathrm{~kg}\) is actually less than 1...
-
The city health inspector wishes to determine the mean bacteria count per liter of water at a popular city beach. Assume the number of bacteria per liter of water is normal with mean and standard...
Study smarter with the SolutionInn App