Question: SET B - QUESTION 2 [15 Marks] The Melon Enterprise used to sell 175 bottles of 500ml vegetable cooking oil per month. The unit cost

SET B - QUESTION 2 [15 Marks]

The Melon Enterprise used to sell 175 bottles of 500ml vegetable cooking oil per month. The unit cost for a bottle of cooking oil is RM2.50 and the cost of placing an order has been estimated to be RM12.00. The store imposes an inventory carrying charge of 27% per year. The company have to wait 3 weeks time for the order to be delivered. Based on this information, calculate the following inventory decisions: (Hint: Provides your answers in two decimal points)

Optimum order quantity, order frequency and annual total cost.

(8 marks)

The store restructures its inventory system by ordering using an automation purchasing process, the ordering cost can be by cut 65%. Determine the new optimal order quantity, order frequency and annual inventory cost. Explain your answer.

(7 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 General Management Questions!

QUESTION [15 Marks] The Melon Enterprise used to sell 175 bottles of 500ml vegetable cooking oil per month. The unit cost for a bottle of cooking oil is RM2.50 and the cost of placing an order has...

SECTiON A [100 MARKS] Answer ALL the questions in this section. Choose the most appropriate answer. Write down the letter that represents the correct answer next to each number in your answer...

(a) Explain any four users of management accounting information and explain their needs. (4 marks) (b) Distinguish between: (i) labour cost accounting and payroll accounting. (2 marks) (ii)...

please do all the questions from 1 up to 4. [ASSIGNMENT 1 - 100 MARKS] QUESTION 1 25 MARKS Namib Processor Limited makes and sells one product. The standard production cost per unit is as follows:...

SET B: Answers ALL Questions (70 MARKS) QUESTION 1 [25 Marks] An electronic appliance manufacturer wants to know if there is a relationship between percentage change in deposable personal income...

please please please help Your company will be a small manufacturing/wholesale business that rents a Business Unit that has both a production and an administration area. The company will make the...

Beer for All Beer for All: SABMiller in Mozambique. Pg. 183 Describe the Mozambican context from a social and economic perspective. How has SABMiller shifted its traditional model to suit the...

Read the case study and answer asap: How does the social mission affect the development of the new venture and its access to resources? Hola, Bandida: Launching A Beverage Brand with Purpose *n...

Montonya Company has the following selected data for the current year: Sales (10,000 units) $90,000 Direct materials 30,000 Direct labor costs 10,000 Variable manufacturing overhead 3,500 Fixed...

The lifting force along the wing of a jet aircraft consists of a uniform distribution along AB, and a semiparabolic distribution along BC with origin at B. Replace this loading by a single resultant...

Solve the following problems. Take all final answers to two decimal places. (a) A rectangular sheet of metal is twice as long as it is wide. Squares 3 cm by 3 cm, are cut from each comer and the ends...

Complete the Trial Balance as at March 3 1 , 2 0 0 3 by filling in the shadef areas on the Trial Balance in the Answer Sheets section and balance the Trial Balance

Navajo Company s year - end financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending...