Question: Redan Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. If the relevant carrying cost per switch assembly is $10, and the

Redan Manufacturing uses 2,500 switch assemblies per week and then reorders another 2,500. If the relevant carrying cost per switch assembly is $10, and the fixed order cost is $2,400, is Redans inventory policy optimal? Why or why not? (5 marks)

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 Finance Questions!

1. 11. EOQ [LO 20.4] Woodanilling Manufacturing uses 3 400 switch assemblies per week and then reorders another 3 400. If the relevant carrying cost per switch assembly is $7.45 and the fixed order...

Clap off Manufacturing uses 3, 100 switch assemblies per week and then reorders another 3, 100. Assume the relevant carrying cost per switch assembly is $6.80 and the fixed order cost is $530....

Calculating Carrying costs, order costs, EOQ, Louise Manufacturing uses 3, 300 switch assemblies per week and then reorders another 3.300. The relevant carrying cost per switch assembly is $14.00 and...

Cohen Industrial Products uses 2, 100 switch assemblies per week and then reorders another 2, 100. The relevant carrying cost per switch assembly is $18, and the fixed order cost is $300. What is the...

1. EOQ. Yorktown Electronics uses 975 switch assemblies per week and then reorders another 975. If the relevant carrying cost per switch assembly is $6.25 and the fixed-order cost is $430, is...

Cohen Industrial Products uses 3,600 switch assemblies per week and then reorders another 3,600 units. The annual carrying cost per switch assembly is $9.74, and the fixed order cost is $78. What is...

Cohen Industrial Products uses 2,100 switch assemblies per month and then reorders another 2,100. The relevant carrying cost per switch assembly is $20 every year, and the fixed order cost is $300....

=+LG 3 E153 Cohen Industrial Products uses 2,100 switch assemblies per month and then reorders another 2,100. The carrying cost per switch assembly is $20 per year, and the fixed order cost is $300....

QUESTION Signature Corp. has WACC of 12%. Its capital structure is based on 100% equity but it has ability to borrow at a rate of 10%. Compute the followings: a. The Cost of equity of Signature...

Atalian Manufacturing Ltd. Uses 1,900 switch assemblies per week and then reorder another 1,900. If the relevant carrying cost per switch assembly is $9, and the fixed order cost is $850. Is...

Solve the following system of equation using LU decomposition with partial pivoting: 2x1 6x2 x3 = 38 3x1 x2 + 7x3 = 34 8x1 + x2 2xc3 = 20

Bonds Company purchased a new plant asset on April 1, 2014, at a cost of $355,500. It was estimated to have a service life of 20 years and a salvage value of $30,000. Bondss accounting period is the...

Like most hospitals and other treatment facilities in the Mendoza study, Hospital KLM consistently encounters late reimbursements / payments from third - party payers ( > 5 9 days on average ) ,...

In real estate market segmentation, what attribute focuses on issues related to zoning and regulations? Group of answer choices Linkage Legal Physical Environmental

Conduct networking interviews. To help meet your objective, select one person to interview by phone if it is difficult to meet in person for a 20-minute interview. List the person and write questions...

Many of the TV reality shows have an element of teamwork. However, they often have members of the teams doing negative things to each other to get ahead. Do you believe that these negative examples...

Develop your network. List at least five people to be included in your network, preferably people who can help you achieve your objective.