Question: In a warehouse operating under a classical EOQ policy, with order quantity 373, annual demand of 5,000 units, inventory holding cost $3.7/unit/year, and an ordering

In a warehouse operating under a classical EOQ policy, with order quantity 373, annual demand of 5,000 units, inventory holding cost $3.7/unit/year, and an ordering cost of $364/order, what is the annual ordering cost?

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 Finance Questions!

In a warehouse operating under a classical EOQ policy, with order quantity 462 , annual demand of 5,000 units, inventory holding cost $4.8/ unit/year, and an ordering cost of $211 /order, what is the...

supply chain In a warehouse operating under a classical EOQ policy, with order quantity 1,952 units, inventory holding cost $4.3/ unit/year, and an ordering cost of $288 /order, what is the annual...

supply chain In a warehouse operating under a classical EOQ policy, with order quantity 1,952 units, inventory holding cost $4.3/ unit/year, and an ordering cost of $288/ order, what is the annual...

In a warehouse operating under a classical EOQ policy, with order quantity 1,006 units, inventory holding cost $4.1/unit/year, and an ordering cost of $358/order, what is the annual holding cost?...

In a warehouse operating under a classical EOQ policy, with order quantity 1,730 units, inventory holding cost $3.9/unit/year, and an ordering cost of $379/order, what is the annual holding cost?

Economic Order Quantity Model Annual Demand Rate Ordering Cost 20,400 Unit Cost $40.00 Carrying Charge Rate $12.00 Carrying Charge Rate 0.21 Economic Order Quantity (to the nearest whole) Order cost...

APPENDIX 3 Areas under the Normal Curve Example: If - 1.96, then P(O to x) - 0.4750 0.4750 0 10 0.00 0.01 2010 0.03 0.04 0.05 0.06 0.07 0.08 0109 0.0000 0.0120 0.05 0.0359 8600 00 01 02 0.3 CLOE19...

A company is trying to determine an appropriate inventory policy and has gathered the following information. It has annual demand for 18,000 units. The holding cost is $1.5 per unit each year; the...

Cars-to-Dealers Logistics Inc. is the exclusive logistics provider for the Summit Motor Co. and has responsibility for transporting cars from Summit's 3 manufacturing plants in Toledo, OH; Charlotte,...

*Please show all the functions and formulas used in the excel spreadsheet insert Draw Design Layout References Mallings Review view Help Share Quantity Discounts The Quantity Discount worksheet...

Assume that the consumption schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned investment Ig and net exports Xn are independent of the level of...

Using appropriate tables, solve the following future value of annuity problems: Required 1. What is the future value on December 31, 2013 of seven cash flows of $10,000, with the first cash payment...

A company is considering a peczal order for 1 . 0 0 0 units to be priced at $$ 9 0 ( the normal price would be $ 1 1 S 0 ) . The order woeld require specialized materals conting $ 4 . 0 0 per unit....

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

Dan Daily, purchasing manager for the ValueMax supermarket chain, has requested a 10 percent discount on the cost of the 25,000-unit shipment of paper grocery bags delivered to his warehouse last...

Sampsons Audio is a regular advertiser in your newspaper, The Sunday Star. The companys 4- by 6-inch ad has been a fixture on page 2 of the Local section for five years. Last week, another advertiser...

Dave Barr, owner of Barr Hardware, has contacted your company about a shipment of 500 bags of lawn fertilizer that he received last week. He stated that 48 bags were torn and not saleable.He would...