Question: Do you think there are any errors in the computation of cost parameters? Correct the EOQ and ROP quantities for each of the five items

Do you think there are any errors in theDo you think there are any errors in the computation of cost parameters? Correct the EOQ and ROP quantities for each of the five items mentioned in the case

EOQ ROP Blending Setup Cost All Other Setup Costs Total Setup Cost (S) Annual Demand (R) % Carrying Cost (K) Unit Cost ca 2RS 3.5 [ XR] 52 Blanchard's 80 proof Vodka Blanchard's 80 proof Gin MacCoy & MacCoy 86 proof Scotch Triple 7 86 proof Blended Whiskey Blanchard's 80 proof Ron Cores Rum $1.15 1.08 3.24 2.62 2.33 0 $72.06 72.06 72.06 72.06 72.06 $73.21 73.14 75.30 74.68 74.39 2,455 1,421 800 3,096 449 11.5% 11.5 11.5 11.5 11.5 $29.31 29.46 36.28 33.55 31.12 327 248 170 346 137 165 96 54 208 30 a. Unit cost (C) = Full unit cost (see Exhibit 3) minus state tax (see Exhibit 3)

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!