ZuoTi.Pro
Question

In the Eagle Beer example, we have the following information. Demand is 2,000 cases per week...

In the Eagle Beer example, we have the following information.

Demand is 2,000 cases per week Cost of product is $8 per case Holding cost: 18% cost of capital, 7% other costs, applied to unit cost of product Ordering cost: (3/4) hours of labor at $20 per hour, $17 per order other costs Number of operating days: (52 weeks)×(5 days/week) Answer the following question using this information. Use two decimal places in your calculations. Do not round the numbers to the nearest integer.

(b)What is the sum of the annual holding and annual ordering cost if the order quantity is 1824 units?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The following answer is calculated annually.832000 Cesto capital 831600 x18 14 94GO ㈦Otku, cesti F58040 15038 Total Cest 8855598 Case -b Msg casu In a yea丸; ,834x52 = 948 ug eases 758 784 136 581 i= 53114 다忖3600 4 1504 8 C11 x52) Total Cest 80910

0 0
Add a comment
Know the answer?
Add Answer to:
In the Eagle Beer example, we have the following information. Demand is 2,000 cases per week...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A restaurant that is open 7 days per week experiences level demand throughout the year. The...

    A restaurant that is open 7 days per week experiences level demand throughout the year. The average annual demand for disposable napkins, which costs $0.20 apiece,is 45000per year. The annual holding cost rate 10% and the ordering cost is estimated to be $25per order. The forecast CV is of 15%and the lead time from order to receipt is 2days. A cycle service level of 98% is targeted. Calculate the optimal order quantity and the reorder point (ROP).

  • PA 12-2 Sarah's Organic Soap Company makes organic... Sarah's Organic Soap Company makes organic liquid soap....

    PA 12-2 Sarah's Organic Soap Company makes organic... Sarah's Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 1500 kgs of palm oil per day on average. The supplier charges a $56 delivery fee per order (which is independent of the order size) and $6 per kg. Sarah's annual holding cost is 15%. Assume she operates and sells 5 days per week, 52 weeks per year. If Sarah...

  • Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous...

    Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.75 per bag. The following information is available about these bags. Demand = 95 bags/week Order cost = $58/order Annual holding cost = 25 percent of cost Desired cycle@service level = 90 percent Lead time = 4 weeks (28 working days) Standard deviation of weekly demand = 16 bags Current on-hand inventory is 315 bags, with...

  • The annual demand for a product has been projected to be 2,000 units. This demand is...

    The annual demand for a product has been projected to be 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is $20 percent of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. If the holding cost...

  • ​Sam's Cat Hotel operates 52 weeks per​ year, 6 days per​ week, and uses a continuous...

    ​Sam's Cat Hotel operates 52 weeks per​ year, 6 days per​ week, and uses a continuous review inventory system. It purchases kitty litter for ​$10.50 per bag. The following information is available about these​ bags: follows≻Demandequals=85 ​bags/week follows≻Order cost=​$50.00​/order follows≻Annual holding costequals=35 percent of cost follows≻Desired ​cycle-service levelequals=80 percent follows≻Lead time=4 weeks ​(24 working​ days) follows≻Standard deviation of weekly demand= 15 bags follows≻Current ​on-hand inventory is 320 ​bags, with no open orders or backorders. a. Suppose that the weekly demand...

  • Sam's Cat Hotel operates 52 weeks per​ year, 7 days per​ week, and uses a continuous...

    Sam's Cat Hotel operates 52 weeks per​ year, 7 days per​ week, and uses a continuous review inventory system. It purchases kitty litter for ​$12.00 per bag. The following information is available about these bags. Refer to the standard normal table for​ z-values. follows ≻Demand ​= 80 ​bags/week follows ≻Order cost​ = ​$ 55/order follows ≻Annual holding cost​ = 29 percent of cost follows ≻Desired ​cycle-service level equals = 96 percent follows ≻Lead time​ = 4 ​week(s) ​(28 working​ days)...

  • Petty House operates 52 weeks per year, 6 days per week, and uses a continuous review inventory

    Petty House operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system (i.e. Q system). It purchases kitty litter for $ 10 per bag. The following information is available about these bags. Demand = 102 bags/ week Order cost = $ 49/ order Annual holding cost = 25 percent of cogs Desired cycle service level = 80 percent Lead time = 3 weeks Standard deviation of weekly demand = 15 bags Current on-hand inventory...

  • Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $35 per delivery...

    Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $35 per delivery (no matter how much is delivered) and $1.20 per gallon. Joe’s annual holding cost per unit is 35 percent of the price per gallon. Joe uses 250 gallons of malt per week. Suppose Joe orders 1000 gallons each time. What is his average inventory (in gal)? Suppose Joe orders 1500 gallons each time. How many orders does he place with his supplier each year?...

  • Umoja Club uses 10,000 cases of special sorghum beer monthly. One case costs Sh. 5,000. Holding...

    Umoja Club uses 10,000 cases of special sorghum beer monthly. One case costs Sh. 5,000. Holding cost is 30% of the cost of a case p.a. while ordering cost is sh. 100.000 per order placed. The firm works 360 days in a year while lead-time is 6 days. Required: a) The EOQ (7 Marks) b) Days between orders (4 Marks) c) The reorder level (4 Marks) d) The total cost of the optimal inventory policy (7 Marks) e) State any...

  • A juice company purchases components from a variety of sources through their global network of suppliers. They are looki...

    A juice company purchases components from a variety of sources through their global network of suppliers. They are looking to determine their order quantity for PET bottles. They have forecast their demand for PET bottles for the next year to be 1195295 cases. Being a standard component, sales are expected to be constant/uniform over the course of the year. They operate 5 days per week so each year is made up of 260 days. The lead time for PET bottles...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT