Question: INVENTORY MANAGEMENT SHOW THE SOLUTION AND FORMULA USING EXCEL 6 An item is consumed at the rate of 1,000 units per year; ordering costs are

INVENTORY MANAGEMENT SHOW THE SOLUTION AND FORMULA USING EXCEL

6 An item is consumed at the rate of 1,000 units per year; ordering costs are $20 per order; and holding costs are 25 percent per year. The purchase cost is a function of quantity purchased at one time as follows: Quantity Cost per unit 1 - 100 $ 10.00 101 - 200 9.75 Above 200 What purchase quantity should be used for the item? 9.50

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!

INVENTORY MANAGEMENT SHOW THE SOLUTION AND FORMULA USING EXCEL (ANSWER ITEM 2) PROBLEM 1 REFERENCE: 2. Assume the same situation as in (a) of problem 1, with the added information that the ordering...

INVENTORY MANAGEMENT SHOW THE SOLUTION AND FORMULA USING EXCEL 1. The ABC Company uses 100,000 units per year of a product. The carrying cost per unit is $3 per year. The cost of ordering a batch is...

INVENTORY MANAGEMENT SHOW THE SOLUTION AND FORMULA USING EXCEL. 4. A company uses a certain part in the assembly of sets of electronic equipment at the rate of 8,000 per year. Each part has a value...

5.17 191 g. f. Assume that a particular notebook occupies 0.10 cubic foot of space, for which the bookstore figures it costs them $2 per term per cubic foot. Calculate the best replenishment quantity...

5.17 (not other than 5.17) Do fast 191 8. f. Assume that a particular notebook occupies 0.10 cubic foot of space, for which the bookstore figures it costs them $2 per term per cubic foot. Calculate...

5.17 ( please) 191 8. f. Assume that a particular notebook occupies 0.10 cubic foot of space, for which the bookstore figures it costs them $2 per term per cubic foot. Calculate the best...

Do 5.20. 191 8. f. Assume that a particular notebook occupies 0.10 cubic foot of space, for which the bookstore figures it costs them $2 per term per cubic foot. Calculate the best replenishment...

5.17 ok 191 8. f. Assume that a particular notebook occupies 0.10 cubic foot of space, for which the bookstore figures it costs them $2 per term per cubic foot. Calculate the best replenishment...

An inventory model follows EOQ assumptions. If the optimal order quantity is 50 items, the monthly demand is 100 items, and ordering cost is $20 per order, then what is the annual inventory holding...

A store faces demand for one of its popular products at a constant rate of 4,800 units per year. It costs the store $70 to process an order to replenish stock and $20 per unit per year to carry the...

Q. What's the difference between corrective and preventive action? Q. Leadership and Commitment for the Quality Management System. As an auditor, provide 3 suggestions to ensure this clause's...

Consider the second-order parallel RLC circuit shown in figure #02. If the circuit parameters are R=4/2 , C=2/10F, and L=10/2 H, the initial conditions on the storage elements are iL(0)=-1 Ampere and...

Decide whether to record revenue from installation of a software for a client if it will not be paid until the software is accepted and it has not been accepted yet, but is expected to be accepted in...

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...