Question: A firm expects total demand for its product over the planning period to be 10,000 units with an ordering cost per order of $400 and

A firm expects total demand for its product over the planning period to be 10,000 units with an ordering cost per order of $400 and a carrying cost per unit of $2. This firm’s economic ordering quantity is:

a.1,000.

b.2,000.

c.3,000.

d.4,000.

Step by Step Solution

★★★★★

3.54 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Calculation of EOQ Where as C a... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

68-B-M-A-P-C (1194).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

KAD has estimated the following demand relationship for its product over the last four years, using monthly observations: ln Qt = 4.932 - 1.238 ln Pt +1.524 ln Y t-1 + 0.4865 ln Q t-1 (2.54) (1.38)...

A company begins a review of ordering policies for its continuous review system by checking the cur- rent policies for a sample of SKUS. Following are the characteristics of one item. 3 Demand (D) =...

A smart home is connected to micro grid as well as utility grid. The micro grid consists of solar and wind energy. Solar power plant meet 60% of energy demand of smart home while rest is from wind...

****I only need help figuring out the correct formula for the cell that is coming back as an error**** Here is the information: Here is what I have in Excel...you will see the error in the D column,...

Demand for cookies and cream ice cream at a Dairy Shop averages 3 gallons per day with a standard deviation of .5 gallons per day. The new manager desires a service level of 90%. Lead time for orders...

Initializing A Cash Discount & EOQ Analysis EOQ Analysis Process the attached documents . All required instructuions and data can be found in the two attachments. NOTE: The EOQ xlsx shows a formula...

Use the key facts below and information from the problem to complete the templates below. You may attach your supporting work which will be considered for partial marks. Otherwise the points will be...

A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8 per stone for quantities of 600 stones or more, $9 per stone for orders of 400 to 599 stones,...

5. The annual demand for a certain product sold in a department store is 1,000 units. Ordering cost per order is $50, holding rate is 40%, and unit cost is $200. The department store currently is...

Question 1 The following information relates to Terjaya Sdn Bhd: Sales = 137,000 units per annum Unit price = RM2.40 Ordering cost per order = RM800 Carrying cost = 12% of unit price Calculate the...

A) LC Company is deciding whether to use the LIFO or FIFO method. Based on the following data, determine inventory cost at the end of 2021 under LIFO and under FIFO. Units Unit Cost 500 1/1/21...

The quantitative methods department head at a major midwestern university will be scheduling faculty to teach courses during the coming autumn term. Four core courses need to be covered. The four...

15.24 Design a problem to help other students better understand how to find the initial and final value of a transfer function.

Prove or disprove the following statement: If A and B are denumerable sets, then A ? B is denumberable.

Prove or disprove the following: |[0, 2)| = {(x, y) R : x + y = 1}|. I

Prove or disprove the following: A = {r Z : r = 1 (mod 3)} and B = {r Z : r = 6 (mod 7) } are numerically equivalent.

Prove or disprove the following statement: {2} x N is uncountable.

Discuss possible ways for manipulating profits under the absorption costing system and if you find using these techniques ethically acceptable.

The damage for the breach of contract is awarded by the court for the purpose of punishing the defaulting party.

Some people believe that individuals working in an organization have a basic human right to satisfaction with their work and to the opportunity to grow and develop. How would you defend this...

Many universities offer a course in industrial or organizational psychology. The content of those courses is quite similar to this one. Do you think that behavioral material is best taught in a...

Do you believe the field of organizational behavior has the potential to become prescriptive as opposed to descriptive? Why or why not?

Help me calculate price to earning ratio and also market to book ratio. Thank you Southwest Airlines Co. Consolidated Balance Sheet (in millions, except share data) December 31, 2017 ASSETS Current...

3) Which of the following statements are true regarding the normal distribution and the t- distribution? i) They are both bell-shaped. ii) They are both centered at 0. iii) As the degrees of freedom...

Homework: Homework 5-2 0 Question 9 Score: 0 of 1 point Save A tennis player makes a successful first serve 51% of the time. If she serves 9 times, what is the probability that she gets exactly 3...