A company experiences annual demand of 1,000 units for an item that it purchases. The rate of
Question:
A company experiences annual demand of 1,000 units for an item that it purchases. The rate of demand per day is very stable, with very little variation from day to day. The item costs $50 when purchased in quantities less than 100, $48 for 100 or more. Ordering costs are $40 and the carrying cost is 25%. How much should the company buy each time an order is placed?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
EOQ and TAC at 50 80 units TAC of ordering 80 units Annual ...View the full answer
Answered By
Rukhsar Ansari
I am professional Chartered accountant and hold Master degree in commerce. Number crunching is my favorite thing. I have teaching experience of various subjects both online and offline. I am online tutor on various online platform.
5.00+
4+ Reviews
17+ Question Solved
Related Book For
Managing Operations Across the Supply Chain
ISBN: 978-0078024030
2nd edition
Authors: Morgan Swink, Steven Melnyk, Bixby Cooper, Janet Hartley
Question Posted:
Students also viewed these Management Leadership questions
-
A manufacturer produces tables and chairs. Each product must go through 3 stages of the manufacturing process: assembly, finishing, and inspection. Each table requires 4 hours assembly, 3 hours...
-
How much will a wholesaler pay for an item that lists for $99 if she is eligible for a trade discount of 30% and a special promotional discount of 18.75%. What is the total amount of the discount in...
-
Suppose your hair grows at the rate 1/32 in. per day. Find the rate at which it grows in nanometers per second. Because the distance between atoms in a molecule is on the order of 0.1nm, your answer...
-
. Suppose that the city of New York issues bonds to raise money to pay for a new tunnel linking New Jersey and Manhattan. An investor named Susan buys one of the bonds on the same day that the city...
-
A student tries to solve the equation 1 / 2x + 3 = 5/2: Describe any errors. Then solve the equation correctly. 2x3 2 x+3=5 x+3 3-5-3 x=2
-
Sinclair Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all...
-
Identify treatments and experimental units in the following scenarios. a. City A would like to evaluate whether a new employment training program for the unemployed is more effective compared to the...
-
George Company purchased land for use as its corporate headquarters. A small factory that was on the land when it was purchased was torn down, and before the new buildings foundation could be...
-
Many colleges and universities are supported by the government, while others are supported by private organizations. What bearing does the source of support have on the determination of authoritative...
-
Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $3,000 cash for use in...
-
A sporting goods company has a distribution center which maintains inventory of fishing rods. The fishing rods have the following demand, lead time and cost characteristics: Average demand = 100...
-
Meyer Stores carries a specialty line of flavored syrups. One of the most popular of these is raspberry syrup which sells, on average, 30 bottles per week. Meyers cost is $8 per bottle. Meyer has...
-
Certain species of parrot cannot be brought to the United States to be sold as pets. What is the name of the legislation that makes this illegal? a. Red List b. Migratory Bird Act c. CITES d....
-
Cases that raise substantial amount of interest in the use of "advanced directives" which allow individuals to put in writing their wishes regarding incapacitation or authorizing a proxy to make...
-
You are a defense attorney, and your first big case is a multiple murder. You have come to the realization that your client really did break into a couple's home and torture and kill them in the...
-
Sara's house has become infested with fungus gnats, which are tiny, harmless, but irritating flying insects. She calls Bugs-B-Gone exterminators to help. Sara orally!! agrees with Bugs-B-Gone that on...
-
What are the three most important tasks that the job needs to perform what are the three most important KSAs that an employee needs to possess If you are to hire a new employee for this job, what...
-
Pretend that your city is not in Canada and is part of a new country. Decide on 10 rights and freedoms that all your citizens will have (your constitution). Describe how the head of Taiwan will be...
-
Hydrogen gas at 85C is maintained at constant pressures of 5 atm and 3 atm on opposite sides of a 0.1-mm-thick nickel wall. Determine the molar diffusion rate per unit area through the nickel wall....
-
The trade-off theory relies on the threat of financial distress. But why should a public corporation ever have to land in financial distress? According to the theory, the firm should operate at the...
-
An instructor administers a 27 -item quiz to her class of 25 students. Each student's score on the quiz is the number of items answered correctly. These scores are listed below: a. Construct a...
-
How should performance measures be viewed from a supply chain perspective?
-
In building supply chain competencies, what are the trade-offs that must be considered?
-
What risk do managers take when they view their firms performance solely in financial terms?
-
ABC partnership is dissolving.assume the noncash assets ( axxounts recwivable with a carrying amount of 4 5 0 0 0 and equupment with a cost of 6 5 0 0 0 and accumulated depreciation of 3 5 0 0 0 )...
-
A taxpayer expenses out $ 1 5 0 , 0 0 0 of tangible property under IRC Section 1 7 9 when they file their Federal return. The taxpayer will need to apportion the Section 1 7 9 between California...
-
The purpose of this part is to provide you with a better understanding of the origins of the Codification. For this part, you should stay in the Codification, clicking on the tab Other Sources ( on...
Study smarter with the SolutionInn App