e. Guardian's beginnings can be traced back to 1967, when it was set up to cater...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
e. Guardian's beginnings can be traced back to 1967, when it was set up to cater for the community's need for pharmaceutical and quality personal care products. Since then, the concept of providing specialised health and beauty products in a professional environment have gained popularity and Guardian started to expand. Guardian is now part of the DFI Retail Group, which has operations throughout Malaysia, Brunei, guardian Singapore, Indonesia, Vietnam and Cambodia. The stores in Malaysia are owned by Guardian Health and Beauty Sdn Bhd. The Company's line of business Dettol includes the retail sale of We Protect What We Love prescription drugs, proprietary drugs, and non-prescription medicines. The company normally sell 18,000 boxes of its Dettol Shower Gel every month. The store is open seven days a week and expects to sell the same number of boxes every month. The average selling price is RM 31.90 per bottle, the carrying cost is RM 13.60 per box and the fixed order cost is RM 747. Continued... HH 8/15 BFM 1014 / BFBM 1014 FUNDAMENTALS OF FINANCE APRIL 2022 Based on the information above: i. What is the total carrying cost? (2 marks) ii. What is the restocking cost? (2 marks) iii. What is the total cost? 9/15 iv. What is the economic order quantity for the store? Is Guardian having an optimal inventory policy in terms of inventory cost, order V. size and order frequency. Justify your answer by showing the details working by comparing using the current quantity order and the EOQ. (3 marks) e. Guardian's beginnings can be traced back to 1967, when it was set up to cater for the community's need for pharmaceutical and quality personal care products. Since then, the concept of providing specialised health and beauty products in a professional environment have gained popularity and Guardian started to expand. Guardian is now part of the DFI Retail Group, which has operations throughout Malaysia, Brunei, guardian Singapore, Indonesia, Vietnam and Cambodia. The stores in Malaysia are owned by Guardian Health and Beauty Sdn Bhd. The Company's line of business Dettol includes the retail sale of We Protect What We Love prescription drugs, proprietary drugs, and non-prescription medicines. The company normally sell 18,000 boxes of its Dettol Shower Gel every month. The store is open seven days a week and expects to sell the same number of boxes every month. The average selling price is RM 31.90 per bottle, the carrying cost is RM 13.60 per box and the fixed order cost is RM 747. Continued... HH 8/15 BFM 1014 / BFBM 1014 FUNDAMENTALS OF FINANCE APRIL 2022 Based on the information above: i. What is the total carrying cost? (2 marks) ii. What is the restocking cost? (2 marks) iii. What is the total cost? 9/15 iv. What is the economic order quantity for the store? Is Guardian having an optimal inventory policy in terms of inventory cost, order V. size and order frequency. Justify your answer by showing the details working by comparing using the current quantity order and the EOQ. (3 marks)
Expert Answer:
Answer rating: 100% (QA)
Hoiding costo ots It is opemi Annual Demand 216000 Cary... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A method for approximating p can be traced back to the Babylonians. The formula is given by the recursively defined sequence where k is an initial guess as to the value of the square root. Use this...
-
A method for approximating p can be traced back to the Babylonians. The formula is given by the recursively defined sequence where k is an initial guess as to the value of the square root. Use this...
-
A method for approximating p can be traced back to the Babylonians. The formula is given by the recursively defined sequence where k is an initial guess as to the value of the square root. Use this...
-
The SEC criticized Frank Sinopoli for not sending an audit inquiry letter to Geo Securities external legal counsel. Describe the nature and purpose of such a letter. Do you agree with the SEC that...
-
Discuss the advantages of using a decision model. How does it help standardize your accounting system? Why is it important to consider qualitative factors when making a decision?
-
A digital computer has a memory unit with a capacity of 16,384 words, 40 bits per word. The instruction code format consists of six bits for the operation part and 14 bits for the address part (no...
-
Consider a Young's interference experiment performed with broadband light. (a) Show that the field incident on the observing screen can be expressed as \[ \mathbf{u}(Q, t)=\tilde{K}_{1} \frac{d}{d t}...
-
Consider the types of poor driving habits that might occur at a traffic light. Make a list of the 10 you consider most likely to happen. Add the category of other to that list. (a) Compose a check...
-
The graph for this data represent the potential energy of a mass of 1.25 kg. The mass has a speed of 8.0 m/s at 3.0m. They system is frictionless 1. determine the total energy (in joules) of the mass...
-
James is 45 years old. He is planning on retiring at age 65 and he is expecting that he will die at age 95. He has been saving for retirement and currently has $250,000 in savings that is earning 6%...
-
Paragraph Effective Presentation Skills post pandamic like zoom platform how it changed to new ways 1 source?
-
Assume that the monthly payments faced by an insurance company are normally distributed with a mean of \($100,000\) and a standard deviation of \($12,000.\) Determine the probability that in a given...
-
Suppose you manage a pension fund and an investment bank contacts you to review the prospectus of a security issue that you know is currently undersubscribed. Assuming your research indicates that...
-
Bluestar Airlines has physical assets valued at \($12,500,000,\) and according to industry experts, the net present value of its future earnings amounts to \($40.00\) per share. Assuming there are...
-
Explain the working principle of the open cycle gas turbine.
-
Xavi decides to short sell 10,000 shares of Guiness Co. stock, currently trading at \($7.00\) per share. Determine Xavis profits if Guiness stock trades at \($5.00\) per share at the moment in which...
-
Tesla's profit fell sharply in the first three months of the year after it cut the prices of its electric vehicles, the company said on Wednesday. The average selling price for Tesla's vehicles in...
-
6. (Potential Energy and Conservation of Energy) What should be the spring constant k of a spring designed to bring a 1200-kg car to rest from a speed of 95 km/h so that the occupants undergo a...
-
Use the accompanying graph of y = f(x). Find the y-intercept(s), if any, of f. 9- (2, 3) (-4, 2) (6, 2) 2 -4 -8 -6 2 -2 -2 -4
-
Identify the equation. If it is a parabola, give its vertex, focus, and directrix; if it is an ellipse, give its center, vertices, and foci; if it is a hyperbola, give its center, vertices, foci, and...
-
f(x) = x 3 3x + 5 (a) Using a graphing utility, graph and approximate the zero(s) of f. (b) Using a graphing utility, approximate the local maxima and local minima. (c) Determine the intervals on...
-
Consider the flow of a perfect gas along a Fanno line. Show that the pressure at the * reference state is given by the relation 1/2 m 2RT, P Ayge(y+1)
-
Air flows in an 8-cm-inside diameter pipe that is \(4 \mathrm{~m}\) long. The air enters with a Mach number of 0.45 and a temperature of \(300 \mathrm{~K}\). (a) What friction factor would cause...
-
Air enters a duct with a mass flow rate of \(35 \mathrm{lbm} / \mathrm{sec}\) at \(T_{1}=520^{\circ} \mathrm{R}\) and \(p_{1}=20 \mathrm{psia}\). The duct is square and has an area of \(0.64...
Study smarter with the SolutionInn App