Question: Please help me figure out A-F Problem 7-9 Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand 31 units
Problem 7-9 Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand 31 units per day Average lead time = 45 days Item unit cost S65 for orders of less than 350 units item unit cost-$63 for orders of 350 units or more Ordering cost $40 Inventory carrying cost = 20% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time a. Calculate EOQ if unit cost is $65 and $63. (Note: These EOQs do not need to be feasible in their price range.) (Round up your answers to the next whole number) EoO Unit cost at $65 units Unit cost at $63 units b. Calculate annual ordering costs for each alternative? (Round your answers to 2 decimal places.) Orderi Unit cost at $65 Unit cost at $63
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
