25. There are 300 working days per year. 1- What is the EOQ? 2- Given the EOQ, What is the average inventory? What is the annual inventory cost?3- In minimizing the cost, how many orders would be made each year? What

25. There are 300 working days per year. 1- What is the EOQ? 2- Given the EOQ, What is the average inventory? What is the annual inventory cost?3- In minimizing the cost, how many orders would be made each year? What

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

A hardware shop sells 3000 brackets in a year and sales is relatively
constant throughout the year. These brackets are purchased from a
supplier for $ 18 each, and the lead time is Three days. The holding cost per
bracket per year is 15% of the unit cost and the ordering cost per order is $
25. There are 300 working days per year. 1- What is the EOQ? 2- Given the
EOQ, What is the average inventory? What is the annual inventory cost?3-
In minimizing the cost, how many orders would be made each year? What
would be the annual ordering cost?4- Given the EOQ, what is the total
annual inventory cost (including purchase cost)? 5- What is the time
* ?between orders? 6-What is ROP

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Given the following informations annual sales in units 30,000 cost of placing an order $60,00 per unit carrying costs $ 1.50 Existing units of safety stock 300 a what is the EOQ? b. what is the average inventory based on the EOQ and the existing safety stock c. what is the maximum level of inventory? d. how many orders are placed each year?
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