Question: The demand for an item is constant at 100 units a year. Unit cost is 50, the cost of processing an order is 20 and

The demand for an item is constant at 100 units a year. Unit cost is £50, the cost of processing an order is £20 and holding cost is £10 a unit a year. What are the economic order quantity, cycle length and costs?

Step by Step Solution

★★★★★

3.41 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Listing the variables given in consistent units Demand D 100 units a year Unit Cost ... 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

Document Format (1 attachment)

180-M-S-Q-M (400).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

The daily demand for an item is distributed normally, with a mean of 5 and a vari-ance of 2. The cost to place an order is $ 10, and the carrying charge per day is esti-mated at 10 percent of the...

Demand for an item is steady at 20 units a week and the economic order quantity has been calculated at 50 units. What is the reorder level when the lead time is (a) 1 week, (b) 2 weeks?

Demand for an item is projected to be 100 units per month. The monthly holding cost is $2 per unit, and it costs an estimated $55 to process an order. a. Determine tire EOQ. b. If the vendor is...

Demand for an item is constant at 100 units a year. Unit cost is 50, reorder cost is 40 and holding cost is 40 per cent of value a year. Any demand that occurs when no stock remains is lost. What is...

Demand for an item is constant at 100 units a year. Unit cost is $50, reorder cost is $40 and holding cost is 40 per cent of value a year. Any demand that occurs when no stock remains is lost. What...

2. Demand for an item is constant at 1,000 units a year. Unit cost is $50, reorder cost is $100, holding cost is 22 per cent of value a year and no shortages are allowed. Describe an optimal...

The demand for an item is constant at 200 units a year. Unit cost is 50, cost of processing an order is 20 and holding cost is 10 per unit per annum. What are the economic order quantity,...

Demand for an item is constant at 100 units a year. Unit cost is 50, reorder cost is 40 and holding cost is 40 % of value a year. Any demand that occurs when no stock remains is lost. What is the...

Demand for an item is constant at 100 units a year. Unit cost is 50, reorder cost is 40 and holding cost is 40% of value a year. A ny demand that occurs when no stock remains is lost. What is the...

Problems 4 . 6 Demand for an item is constant at 1 0 0 units a year. Unit cost is 5 0 , reorder cost is 4 0 and holding cost is 4 0 % of value ayear. Any demand that occurs when no stock remains is...

Find the Mbius function of all intervals in the following poset using the recursive definition. b a d e

Make a function called gradeBookwith one parameter which is a list of dictionaries. You can expect the general form of the list of dictionaries as follows: [{dict_1}, {dict_2}, ... {dict_n}]. An...

A rectangular box must have a volume of 2 cubic meters. The material for the base and top costs $ 4 per square meter. The material for the vertical sides costs $ 1 2 8 per square meter. ( a ) Express...

Chengdu Motors is a new entrant in the auto industry in China. It specializes in small, customized cars, designed for middle-class Chinese customers. Assume that the risk-free rate is 6.25%, and the...

An insurance companyis considering two possible options; The first investment option involves setting up a branch in foreign country. This will involve an immediate outlay of $0.25m, following by...

You are the only CPA on the board of governance of Furn Inc ., a furniture manufacturer. Furn Inc. is a private company owned equally by the daughter and son of the company founder and her husband,...

What is the cost structure for Stimgro and the margin? Since Stimgro is very profitable, with a good margin, why does it matter if the cost of MS-7 increases? What alternatives are open to Amanda...

Seattle Western University has provided the following data to be used in its service department cost allocations: Required: Using the direct method, allocate the costs of the service departments to...

Richard Rosso died owning shares of Strata Real Estate Corp. The actual certificates and other documents relating to Strata had been destroyed in a flood, and Richard had thrown all he papers out....

The purchase patterns for two brands of toothpaste can be expressed as a Markov process with the following transition probabilities: a. Which brand appears to have the most loyal customers? Explain....

Suppose that in Problem 8 a new toothpaste brand enters the market such that the following transition probabilities exist: What are the new long-run market shares? Which brand will suffer most from...

Assume that you have been given the following financial statement data (in $ millions) for KRJ Corporation. Note that all data are represented in absolute value terms and that not all of the...

The American Opportunity Credit is characterized by all of the following EXCEPT: It can be claimed only for the first four years of a post - secondary education The maximum annual credit amount is $...

{a} Find tom when it = 9. {b} Find tU_025 when 1:216. (cl Find 1030 when 1: =13. Click here to View:r age 1 of the table of critical values of the tdistributien. Click here to View:r age 2 of the...