Question: When producing apple pies, KGU bakery uses 8400 apples annually. Each apple cost 2 dollars. The cost of processing an order and arranging delivery is

When producing apple pies, KGU bakery uses 8400 apples annually. Each apple cost 2 dollars. The cost of processing an order and arranging delivery is 70 dollars. The obsolescence cost is $ 24 a day, and the insurance costs $ 18 a month.

a. What are the economic order quantity?

b. How many purchase orders should KGU place in one year using economic order quantity?

c. What is KGUs annual total cost of inventory for apples?

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!

An electric circuit is shown in Figure P2.1. Obtain a set of simultaneous integro differential equations representing the network. Ri Rg R2 FIGURE P2.1 Electric circuit.

I need help preparing the financial statements for the following case study. I need to have spreadsheets that show budgeted financial statements for 2012 to 2015 (24 calc in all). I have attached the...

Question 5 (1 point) At the farmer's market in Irvine, California, the price of avocados is set at $3 each. At that price, 120 avocados are supplied but only 100 are purchased. Represent this on a...

Due Sunday, 11/20: Problems from Zimmerman text: 2-11, 2-44, Case 2-3, 7-7, and 7-20 Chapter Two The Nature of Costs Chapter Outline A. Opportunity Costs 1. Characteristics of Opportunity Costs 2....

Group: PERON A+ PERSON B +PERSON C 1- Introduction 2- Literature a. Definition of operation management b. Definition of operation strategy and why it is important c. Components of operations strategy...

financial SUBDOMAINS: 325.4 COMMUNICATING EFFECTIVELY IN ORGANIZATIONS 326.1 MANAGING INTERNAL COST & CONTROLLING FINANCES 326.2 MANAGING CAPITAL & FINANCIAL ASSETS 326.4 MANAGING ENTERPRISE RISK &...

Question : If you were asked to suggest an appropriate global strategy for B&Js at the end of the case, which 3-4 key factors could you identify in detail that would influence B&Js ideal global...

Use case to answer question only you don't need no other reference. Case Overview Founded by Jeff Bezos, online giant Amazon.com, Inc. (Amazon), was incorporated in the state of Washington in July,...

Read the attached case on Amazon.com, Inc., then answer the following questions. Please, read the case before answering question 1. Thanks! 1. What is Amazons vision statement, and is the company on...

Mr. Wills invested in a business that will generate $75,000 annual after-tax cash flow in years 0 and 1and $90,000 annual after-tax cash flow in years 2 and 3. Compute the NPV of these cash flows at...

Enterprise networks usually consists of thousands of network nodes of various types, spanned across large distances and connected via different carriage types. Management of such a complex structure...

Under the rule in Reed v . King ( which is contrary to later - developed statutes in some states, including MA ) , a seller must: Option A Disclose whether prior residents had certain stigmatized...

Case Greenbuilders Pte Lid ("GPL") is a local construction company which specialises in providing bespoke Design and Build construction services for private residential homes that are designed to be...