Question: Exercise 9 : The annual demand for a certain part is 2 0 0 units per year. Each part costs $ 2 . 5 .

Exercise 9: The annual demand for a certain part is 200 units per year. Each part costs $2.5. The fixed cost of placing an order is $75 and the holding cost rate is 30%.
a) Determine the EOQ
b) Calculate the purchase, ordering, holding, and total inventory costs.
c) How many orders will be placed each year?
d) How much time will elapse between the placements of orders?
Exercise 9: The annual demand for a certain part is 200

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!

Q:

Lowe's Home Improvement has hired you as an operational consultant to help manage inventory for a popular energy- star efficient washing machine model. Annual demand for the washing machine is...

Q:

All questions must be done utilizing microsoft excel and the attachment template with answers must be sent back to me. 1. QUESTION 1 Identify a use of cash from below. Choose only one. decrease in...

Q:

First image re-uploaded 1 Assessment 1 Part 5: Closing a Plant 2 3 Scenario: You have been asked to help Chase Corporation management make certain decisions. Chase has its home office in Oklahoma and...

Q:

QS 23-16 Product pricing LO P1 Garcia Co. sells snowboards. Each snowboard requires direct materials of $101, direct labor of $31, and variable overhead of $46. The company expects fixed overhead...

Q:

Need some help with solving the questions attached below! Question 1 Not yet answered Marked out of 1.00 P Flag question Question 2 Not yet answered Marked out of 1.00 P Flag question Forecasting...

Q:

Exercise 25-19 Make or buy decision LO A1 Gilberto Company currently manufactures 50,000 units per year of one of its crucial parts. Variable costs are $3.50 per unit, fixed costs related to making...

Q:

23 Exercises Saved Exercise 23-4 Make or buy decision LO A1 Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts Variable costs are $1.95 per unitfixed costs...

Q:

Exercise 25-4 Make or buy decision LU AI Gilberto Company currently manufactures 40.000 units per year of one of ts crucial parts. Variable costs are $190 per unt, fixed costs Teated to making this...

Q:

Danny Steel, Inc., fabricates various products from two basic inputs, bar stock and sheet stock. Bar stock is used at a steady rate of 1,000 units per year and costs $200 per bar. Sheet stock is used...

Q:

Check my work 2 Exercise 10-4 Make or buy decision LO A1 Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts. Variable costs are $1.95 per unit, fixed costs...

Q:

Show that the relation R in the set {1,2,3} given by R = {(1,2), (2,1)} is symmetric but neither reflexive nor transitive.

Q:

Do you think the culture problems could have been largely avoided in this merger? How?

Q:

When a business records economic activity in the period it happens, this can be more readily identified as: accerual basis accounting nam bsale teequating reverue recogaition principle eose principle

Q:

Problems Gonzales Food Stores, GFS, a family-owned grocery store chain headquartered in Kelowna, British Columbia, has grown to the point at which it would like to expand its operations throughout...