Question: ABC Inc, orders components for distribution at a monthly demand of 900 units. Holding costs are 15% of the unit cost of $23.75. Tipe ordering

ABC Inc, orders components for distribution at a monthly demand of 900 units. Holding costs are 15% of the unit cost of $23.75. Tipe ordering cost is $47.35. The company operates 240 days per year a. If the company wishes to effectively procure these components, what would be the optional amount to order? b. What is the average inventory? c. How many order cycles are there per yoar? d. What are the total cost al managing the inventory? S e. What is the total cost, including the cost of the inventory? f. What is ABC Inci decided to order 600 components, what impact would it have on holding costs

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!

ABC Inc. orders components for distribution at a monthly demand of 900 units. Holding costs are 15% of the unit cost of $23.75. The ordering cost is $47.35. The company operates 240 days per year a....

N7 ABC Inc. orders components for distribution at a monthly demand of 900 units. Holding costs are 15% of the unit cost of $23.75. The ordering cost is $47.35. The company operates 240 days per year...

ABC Inc. orders components for distribution at a monthly demand of 9 0 0 units. Holding costs are 1 5 % of the unit cost of $ 2 3 . 7 5 . The ordering cost is $ 4 7 . 3 5 . The company operates 2 4 0...

ABC Inc. orders components for distribution at a monthly demand of900units. Holding costs are15%of the unit cost of $23.75.The ordering cost is $47.35.The company operates240days per year a. If the...

ABC Inc. orders components for distribution at a monthly demand of 9 0 0 units. Holding costs are 1 5 % of the unit cost of $ 2 3 . 7 5 . The ordering cost is $ 4 7 . 3 5 . The company operates 2 4 0...

Questions 9 - 12 refer to the following time series: Year: 0 1 2 3 4 Sales: 12 14 19 23 18 9. The value of the three-year centered moving average that corresponds to year 1 will be a. 15. b. 14. C....

From Scholar Heights Bank, $4 255 was withdrawn from chequing account for the following pre-authorized transactions: Bank charges Interest on bank loan Reduction of principal on bank loan Interest on...

How could a tour of the plant assist the auditor in gaining an understanding of the controls in place for important accounting applications?

Assignment Instructions: This assignment includes two questions relate to a data set for 1 0 stocks. The data are given in the attachment ( in the first spreadsheet ) . Q 1 : You are also given an...

When older adults have difficulty with transportation and communication, or may be reluctant to request needed assistance to which they are entitled, they may be in need of: Group of answer choices...