Homework Answers
| EOQ Formula | = | Sq.root(2*A*O)/C) | |
| Where | |||
| A= | Units consumed during the year | ||
| O= | Ordering cost per order | ||
| C= | Inventory carrying cost per unit per annum | ||
| 3) | Sqrt(2*250*15*(1600/15)/(1250/250)) | ||
| 400 | |||
| EOQ is 400 which is more than 250 | |||
| Answer - Option B | |||
| 4) | Sqrt(2*250*15*(1100/15)/(1750/250)) | ||
| 280 | |||
| EOQ is 280 which is more than 250 | |||
| Answer - Option B | |||
| 5) | Sqrt(2*250*15*(1100/15)/(1100/250)) | ||
| 354 | |||
| EOQ is 354 which is more than 250 | |||
| Answer - Option B | |||
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A 3. Carter Limited orders 250 units at a time, and places 15 orders per year....
LIVILY Selection 3. Carter Limited orders 250 units at a time, and places 15 orders per year. Total ordering...
LIVILY Selection 3. Carter Limited orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,600 and total carrying cost is $1,250. Which of the following statements is EU S@ The economic order quantity (EOQ) is 250. The economic order quantity (EOQ) is more ES than 250. The economic order quantity (EOQ) is less than 250. Total inventory-related cost is lower than it would be at the economic order quantity (EOQ) E. None of...
CHAP 15 - Q13 DROPDOWN OPTIONS ARE BELOW THIS 13. Calculate economic ordering quantity (EOQ) Inventory...
CHAP 15 - Q13
DROPDOWN OPTIONS ARE BELOW THIS
13. Calculate economic ordering quantity (EOQ) Inventory costs can be categorized as the costs incurred for holding the inventory, the costs of ordering and receiving the inventory, and the cost of running out of inventory. costs are the direct and indirect costs of keeping inventory on hand. The number of units in the optimal size order is called the economic ordering quantity (E0Q). Murphy Company purchases custom-made durable packing boxes to...
Economic Order Quantity Ottis, Inc., uses 656,100 plastic housing units each year in its production of...
Economic Order Quantity Ottis, Inc., uses 656,100 plastic housing units each year in its production of paper shredders. The cost of placing an order is $24. The cost of holding one unit of inventory for one year is $12. Currently, Ottis places 162 orders of 4,050 plastic housing units per year. Required: 1. Compute the economic order quantity. X units 2. Compute the ordering, carrying, and total costs for the EOQ. Ordering cost $ X Carrying cost Total cost 3....
E15-3 Mama Leone's Frozen Pizzas uses 50,000 units of cheese per year. Each unit costs $2.50. The ordering cost for the...
E15-3 Mama Leone's Frozen Pizzas uses 50,000 units of cheese per year. Each unit costs $2.50. The ordering cost for the cheese is $250 per order, and its carrying cost is $0.50 per unit per year. Calculate the firm's economic order quantity (EOQ) for the cheese. Mama Leone's operates 250 days per year and maintains a minimum inventory level of 2 days' worth of cheese as a safety stock. If the lead time to receive orders of cheese is 3...
3. Calculate the Economic Ordering Quantity (EOQ) model Aa Aa Inventory costs can be categorized as...
3. Calculate the Economic Ordering Quantity (EOQ) model Aa Aa Inventory costs can be categorized as the costs associated with holding the inventory, ordering and receiving the inventory, or running out of the inventory. For example, costs are the direct and indirect costs of keeping inventory on hand. carrying ordering The number of units in the optimal size order is called the economic ordering quantity (EOQ). Jones Company purchases custom-made durable packing boxes to ship its equipment. Each year, Jones...
Diagnostic Supplies has expected sales of 72,900 units per year, carrying costs of $4 per unit,...
Diagnostic Supplies has expected sales of 72,900 units per year, carrying costs of $4 per unit, and an ordering cost of $8 per order. a. What is the economic ordering quantity? Economic ordering quantity units b-1. What is the average inventory? Average inventory units b-2. What is the total carrying cost? Total carrying cost Assume an additional 60 units of inventory will be required as safety stock. c-1. What will the new average inventory be? Average inventory units c-2. What...
Diagnostic Supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit,...
Diagnostic Supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order. a. What is the economic ordering quantity? Economic ordering quantity units b-1. What is the average inventory? Average inventory units b-2. What is the total carrying cost? Total carrying cost $ Assume an additional 80 units of inventory will be required as safety stock. c-1. What will the...
Fisk Corporation is trying to improve its inventory control system and has installed an online system...
Fisk Corporation is trying to improve its inventory control system and has installed an online system at its retail stores. Fisk anticipates sales of 97,200 units per year, an ordering cost of $4 per order, and carrying costs of $1.50 per unit. In the second year, Fisk Corporation finds that it can reduce ordering costs to $1 per order, but carrying costs will stay the same at $1.50 per unit. a-1. What is the economic ordering quantity for the second...
Fisk Corporation is trying to improve its inventory control system and has installed an online system...
Fisk Corporation is trying to improve its inventory control system and has installed an online system at its retail stores. Fisk anticipates sales of 84,500 units per year, an ordering cost of $4 per order, and carrying costs of $1.6 per unit. a. What is the economic ordering quantity? Economic ordering quantity (EOQ) units b. How many orders will be placed during the year? Number of orders c. What will the average inventory be? Average inventory ...
Smith's Florist popular flower bouquet has a weekly demand of 40 units. Each bouquet is sold...
Smith's Florist popular flower bouquet has a weekly demand of 40 units. Each bouquet is sold for $100. The ordering cost is $60 per order. The carrying cost is 30% of the selling price per unit per year. The store operates 50 weeks a year. Required: i. Compute the Economic Order Quantity (EOQ) ii. What is the total annual carrying cost this year? iii. What is the time between orders (i.e. length of an order cycle) in weeks using EOQ.
LIVILY Selection 3. Carter Limited orders 250 units at a time, and places 15 orders per year. Total ordering cost is $1,600 and total carrying cost is $1,250. Which of the following statements is EU S@ The economic order quantity (EOQ) is 250. The economic order quantity (EOQ) is more ES than 250. The economic order quantity (EOQ) is less than 250. Total inventory-related cost is lower than it would be at the economic order quantity (EOQ) E. None of...
CHAP 15 - Q13
DROPDOWN OPTIONS ARE BELOW THIS
13. Calculate economic ordering quantity (EOQ) Inventory costs can be categorized as the costs incurred for holding the inventory, the costs of ordering and receiving the inventory, and the cost of running out of inventory. costs are the direct and indirect costs of keeping inventory on hand. The number of units in the optimal size order is called the economic ordering quantity (E0Q). Murphy Company purchases custom-made durable packing boxes to...
Economic Order Quantity Ottis, Inc., uses 656,100 plastic housing units each year in its production of paper shredders. The cost of placing an order is $24. The cost of holding one unit of inventory for one year is $12. Currently, Ottis places 162 orders of 4,050 plastic housing units per year. Required: 1. Compute the economic order quantity. X units 2. Compute the ordering, carrying, and total costs for the EOQ. Ordering cost $ X Carrying cost Total cost 3....
3. Calculate the Economic Ordering Quantity (EOQ) model Aa Aa Inventory costs can be categorized as the costs associated with holding the inventory, ordering and receiving the inventory, or running out of the inventory. For example, costs are the direct and indirect costs of keeping inventory on hand. carrying ordering The number of units in the optimal size order is called the economic ordering quantity (EOQ). Jones Company purchases custom-made durable packing boxes to ship its equipment. Each year, Jones...
Diagnostic Supplies has expected sales of 72,900 units per year, carrying costs of $4 per unit, and an ordering cost of $8 per order. a. What is the economic ordering quantity? Economic ordering quantity units b-1. What is the average inventory? Average inventory units b-2. What is the total carrying cost? Total carrying cost Assume an additional 60 units of inventory will be required as safety stock. c-1. What will the new average inventory be? Average inventory units c-2. What...
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