Annual demand, D = 25,000 units
Inventory holding rate, i = 7%
Unit price = $ 35
Shipment cost is variable, as it depends upon the order quantity, and is in multiples of $ 500 for every 200 units
Effective unit cost including shipment cost, c = 35+500/200 = $ 37.5
Holding cost, H = i*c = 7%*37.5 = $ 2.625
Order cost, S = 18
EOQ = sqrt(2DS/H)
= sqrt(2*25000*18/2.625)
= 586
We round it up to 600 to three full truckloads
Annual holding cost = H*Q/2
= 2.625*600/2
= $ 787.5
QUESTION 1 Bearkat Inc has an annual forecast of 25,000 units and assumes 7% when holding...
QUESTION 3 Bearkat Inc has an annual forecast of 25,000 units and assumes 7% when holding inventory If supplier 1 offers palm trees for $35.00 per tree and it cost $18.00 to place a purchase order with the company. In addition, the supplier can ship in quantities of 200 trees per truck at a shipment costs of $500 pet truck Use the above information to calculate the annual logistics cost (ALC) Τ Τ Τ Arial 3 (12pt) - THE
QUESTION 3 Bearkat Inc has an annual forecast of 25,000 units and assumes 7% when holding inventory If supplier 1 offers palm trees for $35.00 per tree and it cost $18.00 to place a purchase order with the company. In addition, the supplier can ship in quantities of 200 trees per truck at a shipment costs of $500 pet truck Use the above information to calculate the annual logistics cost (ALC) Τ Τ Τ Arial 3 (12pt) - THE
QUESTION 2 Bearkat Inc has an annual forecast of 25.000 units and assumes 7% when holding inventory If supplier l offers palm trees for $35.00 per tree and it cost $18.00 to place a purchase order with the company. In addition, the supplier can ship in quantities of 200 trees per truck at a shipment costs of $500 per truck Use the above information to calculate the annual order cost (AOC), TT T Arial 3 (121) TELEP
I need help with this HW problem: Weather Inc has an annual forecast of 25,000 units and assumes 7% when holding inventory. if supplier one offers palm trees for $35 per map and it cost $18 to place a purchase order with the company, in addition the supplier can ship in quantities of 200 maps per truck at a shipment costs of $500 per truck. Use the above information to calculate the annual logistics cost.