In the Inventory Simulation group assignment, recall for each month, you had to decide how many...
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In the Inventory Simulation group assignment, recall for each month, you had to decide how many hockey sticks to order. The order quantity was assumed to arrive in the same month the order is placed. So it would be available to satisfy the demand for that month. No backorders were allowed. Recall the following: cost/unit = $100 selling price/unit = $150 ordering cost = $300/order shortage cost = $35 per unit per month holding cost = $5 per unit per month In a particular month, suppose beginning inventory = 10 units, order quantity = 40 units, and demand = 60 units. The total cost for the month is the sum of purchasing cost, ordering cost, holding cost, and shortage cost. For this month, we have purchasing cost = $4,000 and ordering cost = $300. Find the following. (a) Holding cost (b) Shortage cost (c) Total cost (d) Total profit In the Inventory Simulation group assignment, recall for each month, you had to decide how many hockey sticks to order. The order quantity was assumed to arrive in the same month the order is placed. So it would be available to satisfy the demand for that month. No backorders were allowed. Recall the following: cost/unit = $100 selling price/unit = $150 ordering cost = $300/order shortage cost = $35 per unit per month holding cost = $5 per unit per month In a particular month, suppose beginning inventory = 10 units, order quantity = 40 units, and demand = 60 units. The total cost for the month is the sum of purchasing cost, ordering cost, holding cost, and shortage cost. For this month, we have purchasing cost = $4,000 and ordering cost = $300. Find the following. (a) Holding cost (b) Shortage cost (c) Total cost (d) Total profit
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Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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