3. 3.Each year, 20/20 Vision Clinic sells 10,000 frames for eyeglasses. The clinic orders frames from a regional supplier, which charges $25 per frame. Each order incurs an ordering cost of $60. 20/20 vision believes that the demand for frames can be backlogged and that the cost of being short one frame for one year is $15 (because of loss of future business). The annual holding cost for inventory is 20% of the dollar value of each frame. A. Find the optimal order quantity B. Find the maximum shortage and maximum inventory level.

3. 3.Each year, 20/20 Vision Clinic sells 10,000 frames for eyeglasses. The clinic orders frames from a regional supplier, which charges $25 per frame. Each order incurs an ordering cost of $60. 20/20 vision believes that the demand for frames can be backlogged and that the cost of being short one frame for one year is $15 (because of loss of future business). The annual holding cost for inventory is 20% of the dollar value of each frame. A. Find the optimal order quantity B. Find the maximum shortage and maximum inventory level.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
8. A beauty supply store expects to sell 120 flat irons during the next year. It costs $1.60 to store one flat iron for one year. To reorder, there is a fixed cost of $6, plus $4.50 for each flat iron ordered. In what lot size and how many times per year should an order be placed to minimize inventory costs? how many flat irons per order how many orders per year
Ekor bakery sells doughnut. The annual demand is 10,000 per year. The ordering cost is $21, and holding cost is $3. If the demand exceeds the inventory, Ekor has two types of costs associated with the backorder. The loss of goodwill is $O.1 per unit short, and a "bookkeeping" cost of $0.3 per unit short per year. Calculate: economic order quantity, maximum acceptable inventory, cycle time, and minimal total annual average cost. Suppose the doughnuts are sold in packages of 150 units each. How many packages should sell? (Hint: Sensitivity of EOQ).
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What is Wyteboard's minimum costs of ordering and holding inventory?
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16) can you please help with this question?