Question: The demand for a commodity is 40,000 units a year, at a steady rate. It costs 20 to place an order, and 40p to hold

The demand for a commodity is 40,000 units a year, at a steady rate. It costs 20 to place an order, and 40p to hold a unit for a year. Find: a) the order size to minimise stock costs b) number of orders placed each year c) the length of the stock cycle

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!

Please explain the below chart in more than 1 page. (i.e.. ROE, Credit Rating, Image Rating, Net Revenue, Net Profit, Earnings Per Share, Action-Capture Camera Design and UAV Drone Design in North...

Answer ALL the questions in this section. Study the information given below and answer the following questions: (25 Marks) 1.1 Calculate the Payback Period of both machines (answers expressed in...

Study the information given below and answer the following questions: (25 Marks) 1.1 Calculate the Payback Period of both machines (answers expressed in years, months and days). (5 marks) 1.2 Which...

Shocking Wires, a local retailer of electrical supplies, faces demand for one of its SKUs at a constant rate of 3 4 comma 0 0 0 units per year. It costs Shocking Wires $ 3 5 to process an order to...

Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 1 7 comma 0 0 0 units per year. It costs Leaky Pipe $ 7 5 to process an order to replenish...

please answer both the questions Ann Chovies, owner of the Perfect Pasta Pizza Parlour, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and...

20 min left QUESTION 13 Which of the following isnot an advantage(s) the PERT/CPM technique has over a Gantt chart? its ability to reveal relationships among activities 3.i Mustrates multiple paths...

Annual demand for a particular item is 1,200 units per year (360 days per year). It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one...

6.14 Using the grammar of Figure 6.17, draw parse trees and abstract syntax trees for the arithmetic expressions: (a) ((2)) (b) 3+4+5+6*7 (c) 3+4+5+6+7 (d) 3* (4+5)*(6+7) (e) (2+(3+(4+5))) figure...

Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity...

A producer who forward contracts with an elevator prior to harvest is left with what type of risk? Storage cost risk Basis risk Downside Price risk Non production risk

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...