Question: points Return to questionItem 3 Problem 1 2 - 6 ( Algo ) A produce distributor uses 7 7 3 packing crates a month, which

points
Return to questionItem 3
Problem 12-6(Algo)
A produce distributor uses 773 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an annual carrying cost of 33 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month.
How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places.)

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:

Problem 12-6 (Algo) A produce distributor uses 781 packing crates a month, which it purchases at a cost of $9 each. The manager has assigned an annual carrying cost of 30 percent of the purchase...

Q:

Check Problem 12-6 (Algo) A produce distributor uses 790 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 39 percent of the...

Q:

Problem 12-6 (Algo) A produce distributor uses 778 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an annual carrying cost of 38 percent of the purchase...

Q:

Problem 12-6 (Algo) A produce distributor uses 780 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase...

Q:

6. Annual Demand =900 units EOQ= Item Cost =$45 Holding Cost Rate =25% Order Cost = \$90. TC = 7. Annual Demand =1000 units EOQ= Item Cost =$175 Holding Cost Rate =20%/ year Order Cost =$90. TC= 8. A...

Q:

6. Annual Demand =900 units EOQ= Item Cost =$45 Holding Cost Rate =25% Order Cost = \$90. TC = 7. Annual Demand =1000 units EOQ= Item Cost =$175 Holding Cost Rate =20%/ year Order Cost =$90. TC= 8. A...

Q:

Hw #5 Answer the following problems * Show ALL WORKI 3(A-D),4,19,20 31 cation for these Unit Cost Uni Cost 20 4. Por, 5100, E130 Find Moden this Story The intable context menu and me from Ny Time...

Q:

Problem 1) (12 points) A produce distributor uses 2,560 packing crates a month, and each crate is purchased at a cost of $16. The manager has assigned an annual carrying cost of 25 percent of the...

Q:

Supply Chain Management Introduction Outline What is supply chain management? Significance of supply chain management. Push vs. Pull processes utdallas.edu/~metin 1 A Generic Supply Chain Sources:...

Q:

For all the prablems, to receive full scere, yeu mest show your cemplete and accurate work. i.e. show bow you calculated the numbers you ase. If yeu anly previde the final answers withouf...

Q:

Brady is hired in 2015 to be the accountant for Anderson Manufacturing, a private company. At the end of 2015, the balance of Accounts Receivable is $29,000. In the past, Anderson has used only the...

Q:

Give two reasons audit work on cash is likely to be more extensive than might appear to be justified by the relative amount of the balance sheet figure for cash.

Q:

Which of the following stmements is CORRECT 7 The yield on a 2 - year corperate bond should always exceed the yield on a 2 - year Treasury boed. If imfation is expected to increase, thes the yield es...

Q:

2. The force of interest 8 is a function of time and at any time t, measured in years, is given by the formula: 8(t) = 0.02 +0.0020 8(t) = 0.03 +0.005t Osts5 5 st s 10 a) Calculate the discount...