Mighty Fine (MF) operates a megastore featuring sports merchandise. It uses an EOQ decision model to...
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Mighty Fine (MF) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its Los Angeles Galaxy soccer jerseys product line. This is a highly popular item Data for 2020 are as follows: (Click the icon to view the data) Read the requirements Requirement 1. Calculate the EOQ. Begin by selecting the formula used to calculate EQQ (D-Demand in units for one year, POrdering cost per purchase order, C Carrying cost of one unit in stock, Q=Any order quantity.) Data table Expected annual demand for Galaxy jerseys Ordering cost per purchase order Carrying cost per year 25,000 $220 $11 per jersey Each jersey costs MF $35 and sells for $70. The $11 carrying cost per jersey per year consists of the required return on investment of $5.95 (17% x $35 purchase price) plus $5.05 in relevant insurance, handling, and storage costs. The purchasing lead time is 7 days. MF is open 365 days a year. Print Done - Requirements 1. Calculate the EOQ. 2. Calculate the number of orders that will be placed each year. 3. Calculate the reorder point. Print Done - - X Mighty Fine (MF) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its Los Angeles Galaxy soccer jerseys product line. This is a highly popular item Data for 2020 are as follows: (Click the icon to view the data) Read the requirements Requirement 1. Calculate the EOQ. Begin by selecting the formula used to calculate EQQ (D-Demand in units for one year, POrdering cost per purchase order, C Carrying cost of one unit in stock, Q=Any order quantity.) Data table Expected annual demand for Galaxy jerseys Ordering cost per purchase order Carrying cost per year 25,000 $220 $11 per jersey Each jersey costs MF $35 and sells for $70. The $11 carrying cost per jersey per year consists of the required return on investment of $5.95 (17% x $35 purchase price) plus $5.05 in relevant insurance, handling, and storage costs. The purchasing lead time is 7 days. MF is open 365 days a year. Print Done - Requirements 1. Calculate the EOQ. 2. Calculate the number of orders that will be placed each year. 3. Calculate the reorder point. Print Done - - X
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