Northcutt Bikes purchases two types of wheels for their road racing bikes: a regular version and a
Question:
a. Calculate the EOQ for each wheel type.
b. Calculate the ROP for each wheel type.
c. For each wheel type, calculate the total yearly holding and ordering cost, as well as total item cost.
Other important information:
Yearly holding cost 20% of item cost
Ordering cost $200 per order
Service level 95%
Lead time 0.5 months
Item costs
Deluxe Wheels $40 each
Regular Wheels $35 each
Transcribed Image Text:
Regular Deluxe Combined Month wheels wheels demand EOQ- EOQ- Reg Del 45.60702 | 69.35416 jan 208 481 689 39.11521 56.21388 feb 153 316 469 March 238 553 791 48.78524 74.36397 april 296 648 944 54.40588 80.49845 may 292 228 520 54.03702 47.74935 june 322 527 849 56.74504 72.59477 july 102 605 707 31.93744 77.78175 aug 211 510 721 45.93474 71.41428 sept 286 538 824 53.47897 73.34848 oct 193 590 753 43.93177 76.81146 nov 186 657 843 43.12772 81.05554 dec 129 582 711 35.91657 76.28892
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
a Economic Order Quantity Regular Deluxe Combined Month wheels wheels demand EOQ Reg EOQDel Jan 208 ...View the full answer
Answered By
Saikumar Ramagiri
Financial accounting:- Journal and ledgers, preparation of trail balance and adjusted trail balance Preparation of income statement, retained earning statement and balance sheet Banks reconciliation statements Financial statement analysis Cash flow statement analysis (both direct and indirect methods) All methods of Depreciations Management Accounting:- Ratios Budgeting control Cash budget and production budget Working capital management Receivable management Costing:- Standard and variance costing Marginal costing and decision making Cost-volume-profit analysis Inventory management (LIFO, FIFO) Preparation and estimation of cost sheet Portfolio management:- Calculation of portfolio standard deviation or risk Calculation of portfolio expected returns CAPM, Beta Financial management:- Time value of money Capital budgeting Cost of capital Leverage analysis and capital structure policies Dividend policy Bond value calculations like YTM, current yield etc International finance:- Derivatives Futures and options Swaps and forwards Business problems Finance problems Education (mention all your degrees, year awarded, Institute/University, field(s) of major): Education Qualification Board/Institution/ University Month/Year of Passing % Secured OPTIONALS/ Major ICWAI(inter) ICWAI inter Pursuing Pursuing - M.com(Finance) Osmania University June 2007 65 Finance & Taxation M B A (Finance) Osmania University Dec 2004 66 Finance & Marketing. B.Com Osmania University June 2002 72 Income Tax, Cost & Mgt, Accountancy, Auditing. Intermediate (XII) Board of Intermediate May 1999 58 Mathematics, Accountancy, Economics. S S C (X) S S C Board. May 1997 74 Mathematics, Social Studies, Science. Tutoring experience: • 10 year experience in online trouble shooting problems related to finance/accountancy. • Since 6 Years working with solution inn as a tutor, I have solved thousands of questions, quick and accuracy Skills (optional): Technical Exposure: MS Office, SQL, Tally, Wings, Focus, Programming with C Financial : Portfolio/Financial Management, Ratio Analysis, Capital Budgeting Stock Valuation & Dividend Policy, Bond Valuations Individual Skills : Proactive Nature, Self Motivative, Clear thought process, Quick problem solving skills, flexible to complex situations. Achievements : 1. I have received an Award certificate from Local Area MLA for the cause of getting 100% marks in Accountancy during my Graduation. 2. I have received a GOLD MEDAL/Scholarship from Home Minister in my MBA for being the “Top Rank student “ of management institute. 3. I received numerous complements and extra pay from various students for trouble shooting their online problems. Other interests/Hobbies (optional): ? Web Surfing ? Sports ? Watching Comics, News channels ? Miniature Collection ? Exploring hidden facts ? Solving riddles and puzzles
4.80+
391+ Reviews
552+ Question Solved
Related Book For
Introduction to Operations and Supply Chain Management
ISBN: 978-0132747325
3rd edition
Authors: Cecil B. Bozarth, Robert B. Handfield
Question Posted:
Students also viewed these Corporate Finance questions
-
Northcutt Bikes purchases two types of wheels for their roadracing bikes: a regular version and a deluxe version. The table below has demand information for the past year for each style of wheel, as...
-
When she established the department, she named Ann Hill, one of her best clerical workers at the time, to establish and manage the department. At rst, the department occupied only a corner of the...
-
A package express carrier is considering expanding the fleet of aircraft used to transport packages. Of primary importance is that there is a total of $350 million allocated for purchases. Two types...
-
What personal constructs do you rely on when perceiving the people in this photo?
-
Batteries are rated in terms of ampere-hours (A h). For example, a battery that can produce a current of 2.00 A for 3.00 h is rated at 6.00 A h. (a) What is the total energy, in kilowatt-hours,...
-
a) An individual in the 28 percent federal income tax bracket and 15 percent long-term capital gains tax bracket bought and sold the following securities during the year: What are the taxes owed on...
-
The concept of a critical insulation radius was introduced in Example 3.6. Consider the thin-walled copper tube and insulation of the example. Now, the tube temperature is \(-10^{\circ} \mathrm{C}\)...
-
Al Cromwell places a market order to buy a round lot of Thomas, Inc., common stock, which is traded on the NYSE and is currently quoted at $50 per share. Ignoring brokerage commissions, determine how...
-
4. Two solid shafts (G=75 GPa) are connected using gears as shown. Shaft ACEG has a diameter of 50 mm and shaft BDF has a diameter of 30 mm. The ends of the shafts are fixed at A and B, and the...
-
(4p) Assume the interest rate of a three-year maturity zero-coupon bond is 7.5% and a five-year bond is 9.5%. What is the expected interest rate between year three and five if you are considering:...
-
Johnson wants to leave some of his assets to charity, some to his wife, and some to his children. He has some assets in a traditional retirement plan, some in a Roth plan, and some in "outside"...
-
One of the major U.S. tire makers wishes to review its warranty for their rainmaker tire. The warranty is for 40,000 miles. The distribution of tire wear is normally distributed with a population...
-
Set up and solve an appropriate system of linear equations to answer the questions. There are three types of corn. Three bundles of the first type, two of the second, and one of the third make 39...
-
Describe the importance of meaningful critical reflection to evaluate your strategies and monitor Vincent's progress in the service. How can you maintain ongoing consultation and communication with...
-
Hobbes wrote, "The law is more easily understood by few than many words. For all words are subject to ambiguity, and therefore multiplication of words in the body of the law is multiplication of...
-
Use the worksheet titled "Projected Working Capital" to project Idexo's working capital needs over the next ve years. Why is the increase in net working capital negative in 2017? Why does the...
-
Calculate the portfolio variance of the portfolio containing the following three stocks: Stock Weight Standard Deviation A 0.20 0.55 B 0.50 0.30 C 0.30 0.20 The covariance matrix of the three stocks...
-
1. The company stock name is Amazon 2.=1.15 52-week change for the stock=27.67% the S&P 500=36.35% the 6-month rate=0.06% The formula for the CAPM is expressed as: R STOCK = R RF + ( R M - R RF )...
-
Sketch each region (if a figure is not given) and then find its total area. The regions bounded by y = x 2 (3 - x) and y = 12 - 4x
-
Audrey purchases a riding lawnmower using a 2-year, no-interest deferred payment plan at Lawn Depot for x dollars. There was a down payment of d dollars and a monthly payment of m dollars. Express...
-
How many H H eclipsing interactions would be present if cyclopentane were planar? Assuming an energy cost of 4.0kJ/mol for each eclipsing interaction, how much torsional strain would planar...
-
Two conformations of cis-1, 3-dimethylcyclobutanc is shown. What is the difference between them, and which do you think is likely to be more stable? (b) (a)
-
Draw two different chair conformations of cyclohexanol (hydroxycyclohexane), showing all hydrogen atoms. Identify each position as axial or equatorial.
-
In February 2 0 1 6 , hackers targeted the central bank of Bangladesh and exploited vulnerabilities in SWIFT, the global financial system s main electronic payment messaging system, trying to steal...
-
In the Heckscher-Ohlin model, as trade occurs in a capital-abundant country, increased imports will force domestic import- competing firms to decrease prices and production. Labor and capital will...
-
Why has Gatorade been so successful in the sports drink market?
Study smarter with the SolutionInn App