Question: A manufacturing company buys a certain part in varying quantities throughout the year. Ordering cost is $ 11 per order, and holding cost is $0.14

A manufacturing company buys a certain part in varying quantities throughout the year. Ordering cost is $ 11 per order, and holding cost is $0.14 per piece per month. Given the following demand (net requirements) for the part for the next eight months, determine the order sizes and timing of purchase orders using the part-period method.

Month Demand 30 30 30

Step by Step Solution

★★★★★

3.53 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

EPP Ordering Cost 11 7857 79 part periods Holding costuni... 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)

686-B-M-L-O-M (5177).docx

120 KBs Word File

Students Have Also Explored These Related Management Leadership Questions!

15. A reheat-regenerative engine receives steam at 207 bar and 593C, expanding it to 38.6 bar, 343C. At this point, the steam passes through a reheater and reenters the turbine at 34.5 bar, 593C,...

Sycamore Company uses a certain part in its manufacturing process that it buys from an outside supplier for $29 per part plus another $4 for shipping and other purchasing-related costs. The company...

Cardinal Company uses a certain part in its manufacturing process that it buys from an outside supplier for $36 per part plus another $5 for shipping and other purchasing related costs. The company...

Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $44 per part plus another $6 for shipping and other purchasing-related costs. The company...

A manufacturer buys a certain part in varying quantities throughout the year. Ordering cost is $11 per order, and holding cost is 0.14 per unit per month. Given the following demand (net...

kindly provide the corrects anwers for the boxes A manufacturer buys a certain part in varying quantities throughout the year. Ordering cost is $11 per order, and holding cost is $0.14 per unit per...

LO4 15. A manufacturer buys a certain part in varying quantities throughout the year. Ordering cost is $11 per order, and holding cost is $0.14 per unit per month. Given the fol- lowing demand (net...

1 5 . A manufacturer buys a certain part in varying quantities throughout the year. Ordering cost is $ 1 1 per order, and holding cost is $ 0 . 1 4 per unit per month. Given the following demand (...

15. A manufacturer buys a certain part in varying quantities throughout the year. Ordering cost is $11 per order, and holding cost is $0.14 per unit per month. Given the following demand (net...

A manufacturer buys a certain part in varying quantities throughout the year. Ordering cost is $ 1 1 per order, and holding cost is $ 0 . 1 4 per unit per month. Given the following demand ( net...

An observed random process {x(n)} consists of the sum of an AR(p) process of the form And a white noise process {?(n)} with variance ?2?. The random process {v(n)} is also white with variance ?2v....

How is the statement of income related to the three major types of business activities?

Which two of the following primarily constitute the process of recording sales? ( Select all that apply ) Preparing and sending pre - numbered sales involices to costomers Determining that goods...

Following are lists of potential cost pools and cost drivers. REQUIRED Match each cost driver to the most appropriate cost pool. Use each cost driver only once. Explain yourchoice. Cost Pool Cost...

MicroBrew Northwest is a successful brewery engaged in the development and production of specialty micro brews. It uses an activity-based costing system. During the past year, it has incurred...

The accountant at Cellular Advantage needs to close the books at the end of January using the following information. Direct materials are added at the start of production. Conversion costs are...

The Rally Company operates under a process cost system using the weighted average method. All direct materials are added at the beginning of production in the department, and conversion costs are...

Empire Forging produces small plumbing valves. January data for its valve-making process follow. Beginning WIP was 60,000 units. Good units completed and transferred out during the current period...

9 The depreciation recorded in the balance sheet includes (a) Accumulated depreciation for past years (b) Depreciation for the current year (e) Both (d) None of these

Information concerning a product design project is given in table. Indirect project costs amount to $250 per day. The company will incur a $100 per day penalty for each day the project lasts day 14....

You are the manager of a project to improve a billing process at your firm. Table contains the data you will need to conduct a cost analysis of the project. Indirect costs are $16, 00 per week, and...

Knutson Product Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs 1. Orders must be placed in round lots of 100 units. 2. Annual unit...

Data was collected for 300 fish from the North Atlantic. The length of the fish (in mm) is summarized in the GFDT below. Lengths (mm) Frequency 140 - 143 1 144 - 147 16 148 - 151 71 152 - 155 108 156...

Happy Corp. is all-equity-financed. The expected rate of return on the company's shares is 15%. If the company recapitalizes by issuing debt and targets a 30% debt-to-total capital (D/((D+E)=.30),...