A supplier sells Hipoint-brand markers to stationary shops. The annual demand is approximately 30000 pens. The...
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A supplier sells Hipoint-brand markers to stationary shops. The annual demand is approximately 30000 pens. The supplier pays SR 3 for each pen and estimates that the annual holding cost is 15 percent of the pen's value. It costs approximately SR 600 to place an order. The supplier currently buys 10000 pens per order i. Determine the annual ordering and inventory cost (in SR) for current order quantity. ii. Determine the economic order quantity (EOQ). iii. Determine the total annual cost for the EOQ An automobile shop sells 600 batteries in a year and the sales is relatively constant throughout the year. These batteries are purchased for SR 300 each, and the lead time is 5 days. The annual holding cost per battery is 10% of the unit cost and the ordering cost per order is SR 250. There are 25 working days per month. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? (iv) What is the time between orders? (v) What is the ROP? A supplier sells Hipoint-brand markers to stationary shops. The annual demand is approximately 30000 pens. The supplier pays SR 3 for each pen and estimates that the annual holding cost is 15 percent of the pen's value. It costs approximately SR 600 to place an order. The supplier currently buys 10000 pens per order i. Determine the annual ordering and inventory cost (in SR) for current order quantity. ii. Determine the economic order quantity (EOQ). iii. Determine the total annual cost for the EOQ An automobile shop sells 600 batteries in a year and the sales is relatively constant throughout the year. These batteries are purchased for SR 300 each, and the lead time is 5 days. The annual holding cost per battery is 10% of the unit cost and the ordering cost per order is SR 250. There are 25 working days per month. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? (iv) What is the time between orders? (v) What is the ROP?
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Part 1 i Determine the annual ordering and inventory cost in SR for current order quantity The annua... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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