Suppose General Surplus Corporation sells personal copying machines at the rate of 1000 units per year....
Suppose General Surplus Corporation sells personal copying machines at the rate of 1000 units per year. The cost of placing one order is $180, and it costs $100 per year to carry a copier in inventory. Which of the below statements is false?
Group of answer choices
The number of orders per year is 17 (rounded to the nearest integer), and the time interval between orders is 22 days (rounded to the nearest integer) .
The average inventory is 30 copiers.
The annual carrying cost is $2,700.
The annual order cost is $3,000.
Homework Answers
Option D The annual order cost is $3,000.
Economic Order Quantity=sqrt(2*Annual Demand*Ordering cost/Carrying Cost)=sqrt(2*1000*180/100)=60
Number of orers per year=1000/60=16.66667 or 17
Time interval=365/17=21.47059 or 22 days
Average inventory=60/2=30
Annual carrying cost=30*100=3000
Annual order cost=17*180=3060
Add Answer to:
Suppose General Surplus Corporation sells personal copying machines at the rate of 1000 units per year....
Wilderton Inc. sells 1,000 riveting machines per year. The cost of placing one order is $120,...
Wilderton Inc. sells 1,000 riveting machines per year. The cost of placing one order is $120, and it costs $40 per year to carry a riveting machine in inventory. What is the annual total cost of ordering and carrying riveting machines assuming that Wilderton orders at the optimal EOQ level, rounded up to the next whole number? (e.g. if the EOQ is 43.4 round it to 44 when computing total cost) (Enter your answer as a decimal accurate to two...
1 - XYZ is a retailer and sells 144,000 units per year. It purchases from a...
1 - XYZ is a retailer and sells 144,000 units per year. It purchases from a single supplier. Fixed costs per order are $846 and carrying cost is $8 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity? Enter your answer rounded off to two decimal points. Margin for error: +/- 1 2 - XYZ is a retailer and sells 183,000 units per year. It purchases from a single supplier. Fixed...
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...
The Father Domino Company sels copying machines. A major factor in making a sale is Domino's quick service. Domino sells copiers in six cties: 1. Boston, 2. New York, 3. Philadelphia, 4. Wash...
The Father Domino Company sels copying machines. A major factor in making a sale is Domino's quick service. Domino sells copiers in six cties: 1. Boston, 2. New York, 3. Philadelphia, 4. Washington, 5. Providence, and 6. Atlantic City. The annual sales of copiers (in number of copiers sold) projected depend on whether a service representative is within 150 miles of a city (see table below. within 150 miles? 1. Boston 2. New Vork 3. Philadelphia 4. Washington 5. Providence...
The Textile Company sells 175 units per month of a certain large bath towel. The unit...
The Textile Company 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 27% per year. Compute: i. The optimal order quantity [] ii. Order frequency [] iii. The annual cost of inventory management [] iv. If, through automation of the purchasing process, the ordering cost can...
Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from...
Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $32 per unit. They send orders electronically to the manufacturer, costing $57 per order and they experience an average lead time of seven days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is three units per day. They are open for business 250 days a year. Answer...
At Dot Com, a large retailer of popular books, demand is constant at 34,000 books per year. The cost of placing an ord...
At Dot Com, a large retailer of popular books, demand is constant at 34,000 books per year. The cost of placing an order to replenish stock is $5, and the annual cost of holding is $2.00 per book. Stock is received 15 working days after an order has been placed. No backordering is allowed. Assume 325 working days a year. a. Dot Com's optimal order quantity is 1130 books. (Enter your response rounded to the nearest whole number.) b. The...
ABC Company sells 2,505 chairs a year at an average price per chair of $180. The...
ABC Company sells 2,505 chairs a year at an average price per chair of $180. The carrying cost per unit is $37.48. The company orders 496 chairs at a time and has a fixed order cost of $50.7 per order. The chairs are sold out before they are restocked. What are the total shortage costs?
An health center uses 1000 splints per year, with a uniform demand rate. The workers estimate...
An health center uses 1000 splints per year, with a uniform demand rate. The workers estimate that to place each order from a local supplier the health center has to spend about $5.00 for the call and paperwork. The ankle splints cost $12.00 each and holding costs are based on a 20% annual rate. Determine: 1) The economic order quantity and frequency of orders. 2) The total annual fixed order cost, total annual holding cost, and the total overall annual...
ABC Company sells 19,996 chairs a year at an average price per chair of $13.26. The...
ABC Company sells 19,996 chairs a year at an average price per chair of $13.26. The carrying cost per unit is $9.88. The company orders 108 chairs at a time and has a fixed order cost of $68.78 per order. The chairs are sold out before they are restocked. What are the total costs if the company orders the optimal quantity (Economic Order Quantity)? Enter your answer rounded off to two decimal points. Do not enter comma or $ in...
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...
The Father Domino Company sels copying machines. A major factor in making a sale is Domino's quick service. Domino sells copiers in six cties: 1. Boston, 2. New York, 3. Philadelphia, 4. Washington, 5. Providence, and 6. Atlantic City. The annual sales of copiers (in number of copiers sold) projected depend on whether a service representative is within 150 miles of a city (see table below. within 150 miles? 1. Boston 2. New Vork 3. Philadelphia 4. Washington 5. Providence...
Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $32 per unit. They send orders electronically to the manufacturer, costing $57 per order and they experience an average lead time of seven days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is three units per day. They are open for business 250 days a year. Answer...
At Dot Com, a large retailer of popular books, demand is constant at 34,000 books per year. The cost of placing an order to replenish stock is $5, and the annual cost of holding is $2.00 per book. Stock is received 15 working days after an order has been placed. No backordering is allowed. Assume 325 working days a year. a. Dot Com's optimal order quantity is 1130 books. (Enter your response rounded to the nearest whole number.) b. The...
Most questions answered within 3 hours.
-
Describe what “scope creep” is and how can it be avoided? Who is
typically the person...
asked 9 minutes ago -
To test Upper H 0 : sigma =2.3 versus Upper H 1 : sigma greater
than...
asked 4 minutes ago -
Any permanent decrease in autonomous real spending will cause
even larger decreases in real GDP per...
asked 10 minutes ago -
A large distributor has 8 retail outlets. Currently each outlet
manages its ordering independently. Demand at...
asked 22 minutes ago -
You have purchased a $1,000,000 million Face or Par Value 5-year
T-note. This 5-year T-note pays...
asked 19 minutes ago -
Two objects repel/attract each other. What can one say about their
charges?
asked 18 minutes ago -
explain using physics theory either one
Why should you not put foil in the microwave? or...
asked 21 minutes ago -
9 A website that facilitates transactions by bringing together
buyers and sellers from all over the...
asked 23 minutes ago -
Write a command line to view the long listing of all files,
including hidden files, with...
asked 56 minutes ago -
What kind of experiment would allow you to test that the
posterior cytoplasm can cause the...
asked 35 minutes ago -
Code in C++ please!
Write a function that takes an array of integers as an input...
asked 37 minutes ago -
Predict the reactions, if any, when the
following hydrogen compounds are added to water, and
explain...
asked 56 minutes ago