UP Company is a supplier for microscopes to laboratories throughout the country. Down purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation. Annual Demands is45,000 units, Following is information related to cost data during 2019 for two cases
Case 1 Case 2
Ordering Cost per purchase order $200 $100
Carrying Cost per unit $3 $2
Purchasing Cost per unit $40 $40
Selling Price per unit $60 $620
Required: compute:

1. EOQ under Case 1
2. EOQ under Case 2

3. # of deliveries under case 1
4. # of deliveries under case 2
5. Total Relevant Cost for Case 1
6. Total Relevant Cost for Case 2
7. Reorder Point under case 1 if lead time 15 days
8. Reorder Point under case 1 if lead time 0.5 month (1/2 month)
9. Reorder Point under case 1 if lead time 2 weeks and year consist of 52 weeks

Answer rating: 100% (QA)

Hence E... View the full answer