Question: Using the data below, find the EOQ, the total annual cost associated with the economic order quantity, and the reorder point. Annual Demand: 8,000 units

Using the data below, find the EOQ, the total annual cost associated with the economic order quantity, and the reorder point.
Annual Demand: 8,000 units
Weeks Operating: 52/year
Ordering Cost: $35/order
Holding Cost: $4/unit/year
Lead-Time: 3 weeks

Step by Step Solution

★★★★★

3.31 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

EOQ2DEMANDORDERING COSTHOLDING COST 28000354 5600004 374 UNI... View full answer

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!

Find the economic order quantity and the reorder point for the following information: annual demand is 22,500 units, order cost is $70 per order, annual inventory carrying cost is $5 per unit, the...

Using the data below (given in millions of $U.S.), compute GDP, national income, and net domestic product. Corporate profits 1,200 Gross private domestic investment 2,000 Consumption of nondurable...

Repeat Problem 2 using the data below for Yahoo! Inc. However, this time you should create a copy of your worksheet to use as a template. Replace the data for 3M with that of Yahoo. a. Do you notice...

MamaMia's Pizza purchases its pizza delivery boxes from a printing supplier. MamaMia's delivers on-average 200 pizzas each month (assume deterministic demand). Boxes cost 20 cents each, and each...

Refer to CA5.1. Prepare a spreadsheet that proves using the economic order quantity minimizes total inventory ordering costs plus inventory carrying costs. Use Exhibit 5.3 as a guide. Do not round...

Bill Maze, recently hired by Custom Computers, Inc., has suggested using the economic order quantity for the heat sinks. Using the information in Problem 9, calculate the following: (a) Economic...

Primo Paper, Inc., has three paper mills, one of which is located in Seattle, Washington. The Seattle mill produces 200 different types of coated and uncoated specialty printing papers. This large...

IPL Limited uses a small casting in one of its finished products. The castings are purchased from a foundry. IPL Limited purchases 54,000 castings per year at a cost of 800 per casting. The castings...

Reconsider Example 6.20 where a logistic growth curve for the share of U.S. steel produced by electric arc furnace (EAF) technology was estimated. The curve is given by the equation a. Find $95 \%$...

Spot Ltd. produces three products, X, Y and Z in three production departments: Moulding (Dept. M), Assembly (Dept. A) and Finishing (Dept. F). It also has two service departments responsible for...

Develop a negotiation strategy to obtain the loading dock supervisor's cooperation with your project and specifically to assign the employee to the project team

In regards to productivity through the use of determining the number of units produced during each work hour by employees. How does this produce an accurate representation of each individual employee...

Q2 A large all-equity pension fund company with AUM of $500Billion that is closely following S&P 500 index is facing a possibility of new regulatory changes in its management of market risk. The new...

Locate a competitor for Mars. a. Identify ERM processes used by the organization that are the same or different from those used by Mars. b. Select two ERM processes used by the competitor that you...

Client Feedback Report The couple has decided to proceed with the Buffet menu for their Wedding Reception. They do require some additional information and advice on several areas. As the Catering...

Watch the Netflix documentary "Fugitive: The Curious Case of Carlos Ghosn" and analyze it through the lenses of Hoefstede's dimensions. Also, use your knowledge about Bennett, Deardorf, and...

The balance in the supplies account on June 1 was $5150, supplies purchased during June were $3450, and the supplies on hand at June 30 were $2950. The amount to be used for the appropriate adjusting...

Calculate the change in entropy when 100 kJ of energy is transferred reversibly and isothermally as heat to a large block of copper at (i) 0 C, (ii) 50 C.

Apply the McLaren's order moment (MOM) lot-sizing procedure to the following 12 periods of requirements data, indicating order receipts' size and period. Assume order costs are $100/order placed and...

Mrs. Cole's Bakery bakes and distributes bread throughout central Indiana. The company wants to expand operations by locating another plant in Ohio. The size of the new plant will be a function of...

At Pam's Organic Cookie Shop, the demand rate for a box of triple chocolate cookies is normally distributed, with an average of 4,250 boxes per week. The lead time is five weeks. The standard...

Imagine you are in charge of creating a new program for employees at your place of business. Based on your reading of this chapter, create a list of principles for working together that you would...

Have you encountered a bully? List the strategies you read about in this chapter that you could use to deal with a bully in that kind of situation.

Was a discussion leader selected by the group? How well did that person function in his or her leadership role?