Home Pro Sdn Bhd sells a wide range of electrical appliances to householders in IOI mall....
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Home Pro Sdn Bhd sells a wide range of electrical appliances to householders in IOI mall. One of the products it offers is Supersonic Blender MX101. The supplier for Supersonic Blender MX101 pays all incoming freight. No incoming inspection of Supersonic Blender MX101 is necessary because the supplier has a track record of delivering high-quality product. The purchasing officer of the Home Pro Sdn Bhd has collected the following information: Annual demand for Supersonic Blender MX101 Ordering cost per purchase order Carrying cost per year Cost of Supersonic Blender MX101 12,100 units RM225 10% of purchase costs RM34 per roll The purchasing lead time is 4 weeks. The Supersonic Blender MX101 is open 312 days a year (52 weeks for 6 days a week). Required: a) Calculate the EOQ for Supersonic Blender MX101. b) Calculate the number of orders that will be placed each year. c) Calculate the reorder point for Supersonic Blender MX101. d) Discuss the usefulness and disadvantages of EOQ model. (5 marks) (4 marks) (6 marks) (10 marks) Home Pro Sdn Bhd sells a wide range of electrical appliances to householders in IOI mall. One of the products it offers is Supersonic Blender MX101. The supplier for Supersonic Blender MX101 pays all incoming freight. No incoming inspection of Supersonic Blender MX101 is necessary because the supplier has a track record of delivering high-quality product. The purchasing officer of the Home Pro Sdn Bhd has collected the following information: Annual demand for Supersonic Blender MX101 Ordering cost per purchase order Carrying cost per year Cost of Supersonic Blender MX101 12,100 units RM225 10% of purchase costs RM34 per roll The purchasing lead time is 4 weeks. The Supersonic Blender MX101 is open 312 days a year (52 weeks for 6 days a week). Required: a) Calculate the EOQ for Supersonic Blender MX101. b) Calculate the number of orders that will be placed each year. c) Calculate the reorder point for Supersonic Blender MX101. d) Discuss the usefulness and disadvantages of EOQ model. (5 marks) (4 marks) (6 marks) (10 marks)
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Answer rating: 100% (QA)
d EOQ Usefulness includes Minimizing Storage and Holding Costs Storing inventory may be expensive for small business owners The main advantage of the EOQ model is the customized recommendations provid... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Posted Date:
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