Question: Bishop Manufacturing is implementing an economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO).

Bishop Manufacturing is implementing an economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO). It takes 5 total labor hours to process a PO. The average number of stock keeping units (SKUs) on a PO is 2.2. The average wage for people working in the purchasing department is $22 per hour plus employee benefits of $3 per hour. Fixed-costs for the purchasing department are $250,000 per year assuming a 2,000 hour per employee per year work week. What is a good estimate of the cost to order one SKU?

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!

Bishop Manufacturing is implementing an economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO). It takes five total labor hours...

I will rate you, thanks a Bishop Manufacturing is implementing an economic order quality (E0Q) inventory-control system and needs a good estimate of the cost to process a purchase order (PO). It...

1. JAZ Medical Supplies is implementing a new economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO); i.e, the order cost C o ....

JAZ Medical Supplies is implementing a new economic order quality ( EOQ ) inventory - control system and needs a good estimate of the cost to process a purchase order ( PO ) ; i . e , the order cost...

Please answer the following questions. I spent hours trying to figure it out . Thanks. JAZ Medical Supplies is implementing a new economic order quality (EOQ) inventory-control system and needs a...

JAZ Medical Supplies is implementing a new economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO); i.e, the order cost C o . It...

JAZ Medical Supplies is implementing a new economic order quality (EOQ) inventory-control system and needs a good estimate of the cost to process a purchase order (PO); i.e, the order cost Co. It...

On December 31, 20X0, Limestone Charters issued $20 million of 10-year, 12% debentures. Interest is paid semiannually. The market interest rate at issuance was 14%. One year later, on December 31,...

BCS, Inc. has trading and held-to maturity securities on its books. It has bought and sold investments every month during the year. The ending balance in the accounts for the current year and the...

last pay, judy garcia reached 6 9 8 0 0 in earnings. this pay their pensionable earnings are 4 0 0 0 . calculate tge amount of cpp and / or the amount of cpp 2 that he owes this period. judy is paid...

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...