![Che Problem 7-15 Economic ordering quantity with safety stock [LO7-5] Diagnostic Supplies has expected sales of 84100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order a. What is the economic ordering quantity? Ec b-1. What is the average inventory? b-2. What is the total carrying cost? < Prey 15 of 16 Next>](http://img.homeworklib.com/questions/cbeef4c0-4038-11ea-8b40-45e64718369f.png?x-oss-process=image/resize,w_560)
Homework Answers
1
Square root of ((2*84100*10)/5)=580 units
2
EOQ/2 = 580/2 = 290units
3
total carrying cost
EOQ*carrying cost per unit =580*$5 per unit=$2900
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Che Problem 7-15 Economic ordering quantity with safety stock [LO7-5] Diagnostic Supplies has expected sales of...
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...
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Diagnostic Supplies has expected sales of 176,400 units per year, carrying costs of $2 per unit,...
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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...
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Problem 2-4 Economic Order Quantity, Safety Stock Lopez Chemical Inc requres 20,000 galions of material annully the cost of placing an order is s20: the anual carying cost per gallon s $5.Assume thet the company desires a safety stock of 500 gallons Required: 1. Compute the average number of oslons in inventory oslons 2. compute the total carrying cost 3, Compute the total order cost would your answer for total order cost be dittretif here were no solety stooko
LIVILY Selection 3. Carter Limited orders 250 units at a time, and places 15 orders per year. Total ordering...
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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...
3. Calculate the total cost of Orueng all calling utullu P2-2 Economic Order Quantity; Ordering and Carrying Costs LO1 Mayer, Inc. predicts it will use 63,000 units of material during the year. The expected daily usage is 500 units, and there is an expected lead time of five days and a desired safety stock of 1,500 units. The material is expected to cost $5 per unit. Mayer anticipates it will cost $194.45 to place each order. The annual carrying cost...
Nowlin Pipe & Steel has projected sales of 72,000 pipes this year, an ordering cost of $6 per order, and carrying costs of $2.40 per pipe. a. What is the economic ordering quantity? Economic ordering quantity units b. How many orders will be placed during the year? Number of orders orders c. What will the average inventory be? Average inventory units
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...
Problem 2-4 Economic Order Quantity, Safety Stock Lopez Chemical Inc requres 20,000 galions of material annully the cost of placing an order is s20: the anual carying cost per gallon s $5.Assume thet the company desires a safety stock of 500 gallons Required: 1. Compute the average number of oslons in inventory oslons 2. compute the total carrying cost 3, Compute the total order cost would your answer for total order cost be dittretif here were no solety stooko
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