2. A local artisan uses supplies purchased from an overseas supplier. The owner believes the assumptions...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. A local artisan uses supplies purchased from an overseas supplier. The owner believes the assumptions of the EOQ model are met reasonably well. Minimization of inventory costs is her objective. Relevant data, from the files of the craft firm, are annual demand (D) =160 units, ordering cost (S) = $40 per order, and holding cost (H) = $3 per unit per year a. How many should she order at one time? b. How many times per year will she replenish her inventory of this material? c. What will be the total annual inventory (holding and setup) costs associated with this material (rounded to the nearest dollar)? I d. If she discovered that the carrying cost had been overstated, and was in reality only $1 per unit per year, what is the corrected value of EOQ? 2. A local artisan uses supplies purchased from an overseas supplier. The owner believes the assumptions of the EOQ model are met reasonably well. Minimization of inventory costs is her objective. Relevant data, from the files of the craft firm, are annual demand (D) =160 units, ordering cost (S) = $40 per order, and holding cost (H) = $3 per unit per year a. How many should she order at one time? b. How many times per year will she replenish her inventory of this material? c. What will be the total annual inventory (holding and setup) costs associated with this material (rounded to the nearest dollar)? I d. If she discovered that the carrying cost had been overstated, and was in reality only $1 per unit per year, what is the corrected value of EOQ?
Expert Answer:
Answer rating: 100% (QA)
G 1 ii d Eod 2 A0 A Annual demand 0 ordering cost carrying C 2x160 x 40 3 426667 6532 or 65 units ... View the full answer
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Posted Date:
Students also viewed these accounting questions
-
Total Transaction Count 140 120 100 80 60 40 20 0 0 SUMMARY OUTPUT ANOVA Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations y = -0.004x + 69.283 R = 2E-06...
-
Complete the following MRP record using EOQ lot sizing technique. The holding cost is $3 per unit per period and the ordering cost is $500 per order. What is the ordering cost and holding costs using...
-
How do ordering costs for items purchased externally differ from ordering costs for items manufactured internally within the firm?
-
Evaluate 3x - 1 / x - 1. lim
-
Mead, CPA, was engaged to audit Jiffy Companys financial statements for the year ended August 31. Mead is applying sampling procedures. During the prior years audits Mead used classical variables...
-
Small Frys business submits to you the following financial statements: Required: Assess: (a) The profitability; (b) The liquidity; and (c) The operational efficiency of this business. Calculate not...
-
What are the various methods available for vibration control?
-
The Lobs, Love & Lessons Tennis Club is a large, regional chain of full-service tennis clubs that cater to the demographics of the region (about 60% of all adults are single in most locations). The...
-
Your company has a Microsoft Entra tenant that contains the following users: User1 uses multi-factor authentication (MFA) User2 is registered for MFA but never used MFA User3 is enabled for MFA but...
-
Implement a C program to solve the 15-puzzle problem using theA* search algorithm. 1. Objectives ? To gain more experience on using pointers and linkedlists in C programs. ? To learn how to solve...
-
On 1st May, Best Buys, a local retail shop, advertised, 75-inch Sungsam Smart TV, 2022 model, 4K Ultra HD for $1,000. Special offer while stocks last. Bart saw the advertisement and went to the...
-
Differentiate extensively democratic from autocratic leadership. a. Cite situation when democratic leadership could be effective? b. Are there cases where autocratic leadership is applicable? Why?
-
A data set has a mean of x = 4023 and a standard deviation of 105. Find the z-score for each of the following. (a) x3840 (b) -4200 (c) x=4300 (d) x = 4030
-
What are the advantages and disadvantages of autocratic leadership? Cite an example from your own experience that describes autocratic leadership. Your response should be at least 200 words in...
-
Imagine that you are involved in a car accident with a UPS truck and your injuries are $200,000 and the injuries to the UPS driver are only $200,000. You are 60% at fault and the UPS driver is 40% at...
-
What are the main features of an Autocratic leadership style?
-
Given a binary tree T and a node v E T, write a function to print the label of inorder successor of each node of the tree rooted at v. Use only the functions is External (v), leftChild(v), right...
-
Identify the Critical Infrastructure Physical Protection System Plan.
-
Artesian Springs Water Testing Service was established on September 16, 2008. Artesian uses field equipment and field supplies (chemicals and other supplies) to analyze water for unsafe contaminants...
-
Tipton Company produces a product that requires four standard hours per unit at a standard hourly rate of $10 per hour. If 800 units required 3,380 hours at an hourly rate of $9.60 per hour, what is...
-
After the tangible assets have been adjusted to current market prices, the capital accounts of Mike Heil and Alan Delong have balances of $75,000 and $85,000, respectively. Felix Estavez is to be...
-
The advantage of the vapour-compression refrigeration system over the absorption refrigeration system is that (a) The charging of the refrigerant is quite simple (b) The space requirement for...
-
The relative co-efficient of performance of a heat engine is the ratio of (a) The theoretical COP to the actual COP (b) The actual COP to the theoretical COP (c) The theoretical COP to the ideal COP...
-
1 ton of refrigeration is equivalent to (a) \(3.517 \mathrm{~kW}\) (b) \(4.202 \mathrm{~kW}\) (c) \(250 \mathrm{kcal} / \mathrm{min}\) (d) \(50000 \mathrm{kcal} / \mathrm{min}\).
Study smarter with the SolutionInn App