Annual Demand is 1200 units. The cost to place an order is $150 and holding cost...
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Annual Demand is 1200 units. The cost to place an order is $150 and holding cost is 20% per year of the cost of the item. The supplier has just submitted the following cost schedule to you. Quantity 1 to 100 101 to 199 200 and over Price $90 $85.5 $82.5 EOQ Feasable? a. Calculate the EOQ for each Price. Determine which are feasible. Fill in the above. (6) a. Calculate the Total Cost for the EOQ that is feasible and also for all break quantities larger than the feasible EOQ. (6) a. What is the best order size and what would the savings be? (2) Annual Demand is 1200 units. The cost to place an order is $150 and holding cost is 20% per year of the cost of the item. The supplier has just submitted the following cost schedule to you. Quantity 1 to 100 101 to 199 200 and over Price $90 $85.5 $82.5 EOQ Feasable? a. Calculate the EOQ for each Price. Determine which are feasible. Fill in the above. (6) a. Calculate the Total Cost for the EOQ that is feasible and also for all break quantities larger than the feasible EOQ. (6) a. What is the best order size and what would the savings be? (2)
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When Price is 90 Holding cost is 90 x 20 18 When Price is 855 Ho... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Posted Date:
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