CHAP 15 - Q13

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13. Calculate economic ordering quantity (EOQ) Inventory costs can be categorized as the costs incurred for holding the inventory, the costs of ordering and receiving the inventory, and the cost of running out of inventory. costs are the direct and indirect costs of keeping inventory on hand. The number of units in the optimal size order is called the economic ordering quantity (E0Q). Murphy Company purchases custom-made durable packing boxes to ship its equipment. Each year, Murphy uses 70,000 boxes. It costs Murphy $42 to place each order, and the purchase price is $1.92 per box. An analysis indicates that carrying costs are 25% of the purchase price. Based on the information provided, solve for the values under Murphy's EOQ policy in the following table, Value EOQ for packing boxes Number of orders per year Total ordering cost for the year Total carrying cost for the year Total inventory-related cost per year 13. Calculate economic ordering quantity (EOQ) Inventory costs can be categorized as the costs incurred for holding the inventory, the costs of ordering and receiving the inventory, and the cost of running out of inventory. costs are the direct and indirect costs of keeping inventory on hand. Carrying my of units in the optimal size order is called the economic ordering quantity (EOQ). Murphy Company purchases custom-made durable Orderina es to ship its equipment. Each year, Murphy uses 70,000 boxes. It costs Murphy $42 to place each order, and the purchase price is $1.92 Jer OX analysis indicates that carrying costs are 25% of the purchase price. Based on the information provided, solve for the values under Murphy's EOQ policy in the following table. The number of units in the optimal size order is called the economic ordering quantity packing boxes to ship its equipment. Each ses 70,000 boxes. It costs Mur 4,500 boxes per box. An analysis indicates that carrying of the purchase price. 3,000 boxes Based on the information provided, solve f hder Murphy's EOQ policy in th 3,500 boxes 4,000 boxes EOQ for packing boxes Number of orders per year Total ordering cost for the year Total carrying cost for the year Total inventory-related cost per year costs are the direct and indirect costs of keeping inve The number of units in the optimal size order is called the economic packing boxes to ship its equipment. Each year, Murphy uses 70,000 per box. An analysis indicates that carrying 23 orders % of the purc Based on the information provided, solve fo 18 orders under Murphy 16 orders 20 orders EOQ for packing boxes Number of orders per year Total ordering cost for the year Total carrying cost for the year Total inventory-related cost per year Inventory costs can be categorized as the costs incurred for holding the inver running out of inventory. costs are the direct and indirect costs of keeping inventory o The number of units in the optimal size order is called the economic orderin packing boxes to ship its equipment. Each year, Murphy uses 70,000 boxes. per box. An analysis indicates that carrying costs are 25% of the purchase pi Based on the information provided, solve for the values under Murphy's EOQ $966.00 5756.00 $840.00 $672.00 EOQ for packing boxes Number of orders per year Total ordering cost for the year Total carrying cost for the year Total inventory-related cost per year Based on the information provided, solve for the values under Murphy's EOQ $756.00 $966.00 $672.00 EOQ for packing boxes Number of orders per year Total ordering cost for the year Total carrying cost for the year Total inventory-related cost per year $840.00 packing boxes to ship its equipment. Each year, Murphy uses 70,000 boxes. It costs per box. An analysis indicates that carrying costs are 25% of the purchase price Based on the information provided, solve for the values under Murphy's EOQ policy $1,680.00 $2,100.00 $1.260.00 EOQ for packing boxes Number of orders per year Total ordering cost for the year Total carrying cost for the year Total inventory-related cost per year $3,150.00