Question: Louise Manufacturing uses 2,800 switch assemblies per week and then reorders another 2,800. If the relevant carrying cost per switch assembly is $6.20, and the

Louise Manufacturing uses 2,800 switch assemblies per week and then reorders another 2,800. If the relevant carrying cost per switch assembly is $6.20, and the fixed order cost is $1,200, is the company's inventory policy optimal? Why or why not?

Step by Step Solution

★★★★★

3.57 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Given data Number of items used 2800 Frequency of order ... 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)

1107-B-C-F-D-P(554).xlsx

300 KBs Excel File

Students Have Also Explored These Related Corporate Finance Questions!

Fogle Manufacturing uses 2,590 switch assemblies per week and then reorders another 2,590. If the relevant carrying cost per switch assembly is $5.75 and the fixed order cost is $740, is the companys...

EOQ Redon Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. If the relevant carrying cost per switch assembly is $10, and the fixed order cost is $2,400, is Redons...

Clap Off manufacturing uses 1,600 switch assemblies per week and then reorders another 1,600. If the relevant carrying cost per switch assembly is $4 and the fixed order cost is $650, is the companys...

1. 11. EOQ [LO 20.4] Woodanilling Manufacturing uses 3 400 switch assemblies per week and then reorders another 3 400. If the relevant carrying cost per switch assembly is $7.45 and the fixed order...

Clap off Manufacturing uses 3, 100 switch assemblies per week and then reorders another 3, 100. Assume the relevant carrying cost per switch assembly is $6.80 and the fixed order cost is $530....

Calculating Carrying costs, order costs, EOQ, Louise Manufacturing uses 3, 300 switch assemblies per week and then reorders another 3.300. The relevant carrying cost per switch assembly is $14.00 and...

Cohen Industrial Products uses 2, 100 switch assemblies per week and then reorders another 2, 100. The relevant carrying cost per switch assembly is $18, and the fixed order cost is $300. What is the...

1. EOQ. Yorktown Electronics uses 975 switch assemblies per week and then reorders another 975. If the relevant carrying cost per switch assembly is $6.25 and the fixed-order cost is $430, is...

Your company uses 2,600 switch assemblies per week and then reorders another 2,600. The relevant carrying cost per switch assembly is $15, and the fixed order cost is $325. What is the EOQ? O A)...

Cohen Industrial Products uses 3,600 switch assemblies per week and then reorders another 3,600 units. The annual carrying cost per switch assembly is $9.74, and the fixed order cost is $78. What is...

You work as an information security specialist for a large financial company and your CISO has asked you to investigate recent ransom ware attacks. The CISO wants to ensure that the company is well...

What are computer programming languages? Name some specific languages and describe briefly an advantage of each.

8.30 The mean score of the students from training centers for a particular competitive examination is 148, with a standard deviation of 24. Assuming that the means can be measured to any degree of...

The opening vignette presents a discussion on the use of advertising by non-profit and charitable organisations. What is the value of these types of organisations using advertising as a form of...

For each of the following annuities, calculate the annual cash flow. Future Value Years Interest Rate $ 30,000 1,200,000 625,000 125,000 5% 7 8 40 25 13

For each of the following annuities, calculate the future value. Annual Payment Years Interest Rate $1,900 6,000 2,950 6,400 10 40 8% 9 6 10 30

Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the...

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.32 and the total portfolio is equally as risky as the market, what must the beta be for...

Show by resolution that B follows from S where S = {A & B, C}

PERSONAL FINANCE PROJECT Answer the following questions. Critically think through your answers with the knowledge that you have learned in this class. You can refer back to the textbook. Keep in mind...