Question: 2. PT Cikarang, opened a gift shop which operates 52 weeks per year. Managing inventories has become a problem. Top-selling product is a key

2. PT Cikarang, opened a gift shop which operates 52 weeks per

2. PT Cikarang, opened a gift shop which operates 52 weeks per year. Managing inventories has become a problem. Top-selling product is a key holder. sales are 18 units per week, and the price per unit is $60. Ordering cost is $45. Annual holding cost is 25 percent of the key holder price. a) Determine the economic order quantity (EOQ). (6 marks) b) What is the average number of key holder on hand. (3 marks) c) How many orders (number of orders) per year will be needed? (6 marks) d) Compute the total cost of ordering and carrying of key holder. (5 (5 marks) If PT Cikarang order quantity change to 360 unit, how much would that affect the total annual cost? (5 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

*9.8 Ewan began trading on 1 April 2016. A brief summary of his income statement for the year to 31 March 2017 (prepared on the accruals basis) is as follows: Sales 68,750 Less: Cost of sales:...

PQT company operates in P-land where the currency is the P$. The company acquired 90% of the equity shares of its only subsidiary, SVB, on 1 January 20X1 when the fair value (and carrying amount) of...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

The warehouses have the capacity to hold more than 100,000 ft2 of materials. The capacity utilization of the warehouses had increased from 65% to almost 95%. Even though average on-hand inventory...

answer the numerical and mcq asap. 10 points A museum of natural history opened a gift shop which operates 52 weeks per year. Managing inventories has become a problem. Top-selling SKU is a bird...

A museum of natural history opened a gift shop which operates 52 weeks per year. Top-selling item is a bird feeder. Sales are 18 units per week, the supplier charges $60 per unit. Ordering cost is...

Can you show to calculations for the problem below? A museum of natural history opened a gift shop which operates 52 weeks per year. Top-selling SKU is a bird feeder. Sales are 18 units per week, the...

Problem 3: A museum of natural history opened a gift shop which operates 52 weeks per year. Top-selling item is a bird feeder. Sales are 18 units per week, the supplier charges S60 per unit. Ordering...

1 2 3 4 5 6 7 8 99 10 11 12 13 14 15 16 17 18 19 20 21 B C E A museum of natural history opened a gift shop 2 years ago. Managing inventories has become a problem. Low inventory turnover is squeezing...

Read the case and answer the below questions 1)Summarize the key points of the case. 2) Describe the present purchase structure of the firm. 3)Evaluate Make Vs Buy model for the firm. 4)If you were...

Davidson, DDS, purchased new furniture for its store on May 1, 2011. The furniture is expected to have a 10-year life and no residual value. The following expenditures were associated with the...

What are some of the standards CRA uses in evaluating a lease?

ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal monthly payments over a period of 30 years. The interest rate is 12 percent. Required: If the...

Refer to the information for Dandy Candy on the below. Dandy Candy bought a delivery vehicle for $45,000 by issuing an 8% installment note on January 1, 2021. Dandy will make 12 monthly payments of...

Refer to the information for Dandy Candy below. Dandy Candy bought a delivery vehicle for $45,000 by issuing an 8% installment note on January 1, 2021. Dandy will make 12 monthly payments of...

Richter Corporation sold $1,000,000 face value of bonds at 104 on January 1, 2020. These bonds have a 7% stated rate and mature in 4 years. Interest is payable on June 30 and December 31 of each...

Panamint Candy Company prepared the following amortization table for $300,000 of 5-year, 9% bonds issued and sold by Panamint on January 1, 2021, for $285,000: Required: 1. Prepare the entry to...

6 Theory of Machines 5. A shaft carries five masses A, B, C, D and E which revolve at the same radius in planes which are equidistant from one another. The magnitude of the masses in planes A, C and...

Falling-cylinder viscometer (see Fig. 2C.4) A falling-cylinder viscometer consists of a long vertical cylindrical container (radius R), capped at both ends, with a solid cylindrical slug (radius KR)....

Radial flow between parallel disks (Fig. 3B.10). A part of a lubrication system consists of two circular disks between which a lubricant flows radially. The flow takes place because of a modified...

Determination of eddy diffusivity (Figs. 18C.1 and 21A.1), in Problem 18C.1 we gave the formula for the concentration profiles in diffusion from a point source in a moving stream. In isotropic highly...

The ability to work well with many types of people in the workplace is referred to as a. workplace differentiation. b. cultural diversity. c. economic stability. d. career unity. e. employee...

T F The main objective of business firms should be to satisfy the needs of their customers.

T F Fiscal policy determines the level of interest rates.