Question: Clap Off Manufacturing uses 3,000 switch assemblies per week and then reorders another 3,000. Assume the relevant carrying cost per switch assembly is $6.70 and
| Clap Off Manufacturing uses 3,000 switch assemblies per week and then reorders another 3,000. Assume the relevant carrying cost per switch assembly is $6.70 and the fixed order cost is $535. (Enter your answer as directed, but do not round intermediate calculations.) |
| Required: | |
| (a) | Calculate the carrying costs. |
| Carrying costs | $ |
| (b) | Calculate the restocking costs. |
| Restocking costs | $ |
| (c) | Calculate the economic order quantity. (Round your answer to 2 decimal places (e.g., 32.16).) |
| Economic order quantity |
| (d) | Calculate the EOQ number of orders per year. (Round your answer to 2 decimal places (e.g., 32.16).) |
| Number of orders per year |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
