Question: Ordering cost is $ 2 7 per order; annual demand for the product is 4 1 , 0 0 0 units; purchase cost per unit

Ordering cost is $27 per order; annual demand for the product is 41,000 units;
purchase cost per unit is $125; inventory carrying cost is 25%. What is the EOQ?

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!

Q:

A company has been approached by their supplier who would be willing to offer a discount of 5 % on orders over 5 0 0 units . Information regarding current inventory costs is as follows: Holding cost...

Q:

In a factory producing tables, the orders are determined using an MRP format. Component XX used in producing the final product "Table" is procured from a supplier with a fixed ordering cost of 100 TL...

Q:

X PRODUCTIONS/OPERATIONS M/ X Sultan Qaboos University O shissa Al Kindi - Outlook- ul x aqueducom/pluginfile.php/656957/mod_resource/content/1/Deterministic%20E00.pdf Quantity Discount Model -...

Q:

HOW BEER IS MADE The beer-making process is an art. It takes time, patience and quite a bit of experimentation to find that perfect flavour. Once you have found the right mix, you can replicate it,...

Q:

Answer all the Questions BeloW.. to be 15,000 units. Required: Calculate the EOQ to the nearest 1000 units 4.Jitahidi Company is located in Kariobangi Light industries area in Nairobi. The company...

Q:

QUESTION1 Omega Products is involved in the production of camera parts and has the following inventory, carrying and storage costs: i. Annual unit usage is 400,000 (Assume a 50-week year in your...

Q:

question will save this response son 13 tisalat purchases switches at AED 130 per switch. The holding cost is 6% of Price per unit, the ordering cost is AED 230 per order, and demand is steady, at...

Q:

b) For an item, the production is instantaneous. The holding cost of one item is $ 1.00 per month and the set-up cost is $ 25 per run. If the demand is 200 units per month, find the optimum quantity...

Q:

A. In a factory producing tables, the orders are determined using an MRP format Component XX used in producing the final product "Table is procured from a suppler with a fixed ordering cost of 100 TL...

Q:

17 18 19 24 A Moving to another question will save this reponse. Question 5 Starbucks purchases coffee mugs at AED 110 per mug. The holding cost is 5% of Price per unit, the ordering cost is AED 227...

Q:

Aperture show that F(z) = arccosh z gives confocal hyperbolas as stream lines, with foci at z = 1, and that the flow circulates around an elliptic cylinder or a plate (the segment from 1 to 1 in...

Q:

The balance in the supplies account, before adjustment at the end of the year, is $3,915. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $1,750.

Q:

You want to buy a car by taking out a 3 year loan for $ 1 5 , 0 0 0 with a 7 % interest rate.

Q:

5. Develop a scenario comparing two PH programs and involving the use of a CBA.

Q:

Are you repelled by touches from strangers? What about touches from people who are not your age (children or the elderly)? What about being touched by a colleague or a professorsomeone you have a...

Q:

A Does the piercing even matter? What type of message does the tongue stud send?

Q:

Have you ever taken an online or distance-learning course? Were you happy with the instruction and the amount of interaction? It is challenging to both present and respond nonverbally in courses...