The finance department of Parshwanath Corporation gathered the following information- The carrying cost per unit of...
The finance department of Parshwanath Corporation gathered the following information- The carrying cost per unit of inventory is Rs10
The cost per order is Rs20
The number of units required is 50000 per year
The variable cost per unit ordered is Rs5
The purchase price per unit is Rs50
Define the concept of EOQ, its relevance; determine the EOQ and the time gap between two orders.
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The finance department of Parshwanath Corporation gathered the
following information- The carrying cost per unit of...
Data Table Annual demand for denim cloth 40,700 yards Ordering cost per purchase order $185 Carrying...
Data Table Annual demand for denim cloth 40,700 yards Ordering cost per purchase order $185 Carrying cost per year 10% of purchase costs Safety-stock requirements None Cost of denim cloth $11 per yard The purchasing lead time is 2 weeks. The Fabric World is open 220 days a year (44 weeks for 5 days a week). The Fabric World sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used...
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...
You are given the following information: Demand 5,000 Holding Cost = $50 per unit per annum...
You are given the following information: Demand 5,000 Holding Cost = $50 per unit per annum Ordering Cost = $150 per order EOQ = 173.20 You have a new manager and she wants to order 4 times a year as opposed to using the number of orders per year that is required when using the EOQ. What is the difference in dollars when comparing the total annual cost between using the EOQ system and ordering 4 times a year? 7...
(Comprehensive EOQ calculations) Knutson Products Inc. is involved in the production of airplane parts and has...
(Comprehensive EOQ calculations) Knutson Products Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs: 1. Orders must be placed in round lots of 100 units. 2. Annual unit usage is 300,000. (Assume a 50-week year in your calculations.) 3. The carrying cost is 30 percent of the purchase price. 4. The purchase price is $30 per unit. 5. The ordering cost is $500 per order. 6. The desired safety stock is...
(Comprehensive EOQ calculations) Knutson Products Inc. is involved in the production of airplane parts and has...
(Comprehensive EOQ calculations) Knutson Products Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs: 1. Orders must be placed in round lots of 100 units. 2. Annual unit usage is 400,000. (Assume a 50-week year in your calculations.) 3. The carrying cost is 25 percent of the purchase price. 4. The purchase price is $50 per unit. 5. The ordering cost is $500 per order. 6. The desired safety stock is...
5. The purchase-order lead-time is a. The difference between the times an order is placed and...
5. The purchase-order lead-time is a. The difference between the times an order is placed and delivered. b. The difference between the products ordered and the products received. C. The discrepancies in purchase orders. d. The time required to correct errors in the products received. 6. If the purchase price per unit is constant, the carrying cost per unit is constant, and the ordering cost per order is constant, then the annual relevant total costs of having to have an...
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 57,600 units per year, an ordering cost of $12 per order, and carrying costs of $1.50 per unit. In the second year, Fisk Corporation finds that it can reduce ordering costs to $3 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...
The following information is for the Jeffries Corporation: Product A: Selling price per unit Variable cost...
The following information is for the Jeffries Corporation: Product A: Selling price per unit Variable cost per unit Product B: Selling price per unit Variable cost per unit Total fixed costs $12.00 $8.00 $27.00 $19.00 $266,000 What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B? O A. 13,300 units of A and 39,900 units of B O B. 66,500 units of A and 0 units of B...
The soft goods department of a large department store sells 175 units per month of a...
The soft goods department of a large department store sells 175 units per month of a certain large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an order has been estimated to be $12.00. The store uses an inventory carrying charge of I = 27% per year. Determine the following: a. What is the optimal order quantity? 273.25 b. What are the number of orders? [ Select] c. What is...
Data Table Annual demand for denim cloth 40,700 yards Ordering cost per purchase order $185 Carrying cost per year 10% of purchase costs Safety-stock requirements None Cost of denim cloth $11 per yard The purchasing lead time is 2 weeks. The Fabric World is open 220 days a year (44 weeks for 5 days a week). The Fabric World sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used...
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...
You are given the following information: Demand 5,000 Holding Cost = $50 per unit per annum Ordering Cost = $150 per order EOQ = 173.20 You have a new manager and she wants to order 4 times a year as opposed to using the number of orders per year that is required when using the EOQ. What is the difference in dollars when comparing the total annual cost between using the EOQ system and ordering 4 times a year? 7...
(Comprehensive EOQ calculations) Knutson Products Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs: 1. Orders must be placed in round lots of 100 units. 2. Annual unit usage is 400,000. (Assume a 50-week year in your calculations.) 3. The carrying cost is 25 percent of the purchase price. 4. The purchase price is $50 per unit. 5. The ordering cost is $500 per order. 6. The desired safety stock is...
5. The purchase-order lead-time is a. The difference between the times an order is placed and delivered. b. The difference between the products ordered and the products received. C. The discrepancies in purchase orders. d. The time required to correct errors in the products received. 6. If the purchase price per unit is constant, the carrying cost per unit is constant, and the ordering cost per order is constant, then the annual relevant total costs of having to have an...
The following information is for the Jeffries Corporation: Product A: Selling price per unit Variable cost per unit Product B: Selling price per unit Variable cost per unit Total fixed costs $12.00 $8.00 $27.00 $19.00 $266,000 What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B? O A. 13,300 units of A and 39,900 units of B O B. 66,500 units of A and 0 units of B...
The soft goods department of a large department store sells 175 units per month of a certain large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an order has been estimated to be $12.00. The store uses an inventory carrying charge of I = 27% per year. Determine the following: a. What is the optimal order quantity? 273.25 b. What are the number of orders? [ Select] c. What is...
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