Question: Question 4 (10 points) ABC Ltd. uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual

Question 4 (10 points) ABC Ltd. uses EOQ logic to determine

Question 4 (10 points) ABC Ltd. uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consumption is 80,000 units, cost to place one order is $1,200, Cost per unit is $50 and carrying cost is 6% of Unit cost (therefore, inventory holding cost is =$500.06). Find the EOQ, No. of order per year, Ordering Cost and Carrying Cost and Total Cost of Inventory

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!

You are the marketing manager in a retail firm and you want to decide which product to sell in your store among five alternatives based on three criteria: cost, reputation and durability. Again,...

EOQ Problems 1. ABC Ltd. uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consumption is 80,000 units, Cost to place one order is SAR...

Question 1 (a) Describe the costs associated with inventory control and explain the significance of the Economic Order Quantity. (10 marks) (b) ABC Ltd. Uses EOQ logic to determine the order quantity...

Question 12) Demand for the Child Cycle at Best Buy is 800 units per month. Best Buy incurs a fixed order placement, transportation, and receiving cost of 6,000 $ each time an order is placed. Each...

QUESTION 5 ABC Ltd. uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consumption is 160,000 units, cost to place one order is $ 2,400,...

Q24: ABC Ltd, uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consumption is 80.000 units, Cost to place one order is Rs. 1,200, Cost...

7. Calculate the 4-period moving average for the forecast of the incidents in each of Week 8. Show all of your work. Week 1234567Demand1008865140160195105 8. Consider a 3-ohm resistor used in the...

Write a brief note of Employment on .Net, how .net technology increasing the accuracy of SR applications. Also address Introduction and methodology.

Suppose Stenback Valley is deciding whether to purchase new accounting software. The payback for the $30,050 software package is five years, and the softwares expected life is seven years. Stenback...

A check drawn by a depositor for $ 2 1 0 in payment of a liability was journalized as $ 1 2 0 . This item would be included on the bank reconciliation as a ( n ) a . deduction from the balance per...

Note: This problem is for the 2018 tax year. Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social...