Question: This is the only information given to the question, the one that is in the picture . 10 . Question 5 You are a new
10 . Question 5 You are a new CGA in a firm that sells dishwashers. Your first task is to evaluate the inventory management. You have collected the following relevant information: Annual demand is 5.000 units (an average of 100 per week). Cost per unit is $250. Purchase order lead time is 28 days. Relevant insurance costs and material handling costs are $4,500. Relevant ordering costs are $125 per order. Shipping fees are paid by the seller. . 2 2 Required a. If the required rate of return is 15o. calculate the economic order quantity (EOQ), b. Calculate the total relevant costs (TRC) at the EOQ. c. Assuming that the relevant ordering costs are $150 instead of $125. determine the cost of this prediction error. 4 2 d. Briefly explain whether you would handle the shipping fees differently if they were paid by the buyer instead of the seller
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
