Question: Clap Off Manufacturing uses 2,600 switch assemblies per week and then reorders another 2,600. Assume the relevant carrying cost per switch assembly is $6.30 and

Clap Off Manufacturing uses 2,600 switch assemblies per week and then reorders another 2,600. Assume the relevant carrying cost per switch assembly is $6.30 and the fixed order cost is $555.(Enter your answer as directed, but do not round intermediate calculations.)

Required:

a)Calculate the carrying costs.

b)Calculate the restocking costs.

c)Calculate the economic order quantity.(Round your answer to 2 decimal places (e.g., 32.16).)

d)Calculate the EOQ number of orders per year.(Round your answer to 2 decimal places (e.g., 32.16).)

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 Finance Questions!