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9. At the EOQ, how often would the company need to reorder? a. Once a week b. Every other week c. Once a month d. Once every 2 months e. Once every 3 months

9. At the EOQ, how often would the company need to reorder? a. Once a week b. Every other week c. Once a month d. Once every 2 months e. Once every 3 months

Essentials Of Investments
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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Use this data for problems 9-11: Midwest Charm, Inc. specializes in selling scented farm equipment. The company has established a policy of reordering inventory once a month. A recently employed MBA has considered Midwest's inventory problem from the EOQ model viewpoint. If the following constitute the relevant data, how does the following current policy compare with the optimal policy? Ordering cost Carrying cost Purchase price Total sales for year Safety stock = $2,525 per order = 35% of purchase price = $15,000 per unit = 660 units = 15 9. At the EOQ, how often would the company need to reorder? a. Once a week b. Every other week c. Once a month d. Once every 2 months Once every 3 months е.
Transcribed Image Text:Use this data for problems 9-11: Midwest Charm, Inc. specializes in selling scented farm equipment. The company has established a policy of reordering inventory once a month. A recently employed MBA has considered Midwest's inventory problem from the EOQ model viewpoint. If the following constitute the relevant data, how does the following current policy compare with the optimal policy? Ordering cost Carrying cost Purchase price Total sales for year Safety stock = $2,525 per order = 35% of purchase price = $15,000 per unit = 660 units = 15 9. At the EOQ, how often would the company need to reorder? a. Once a week b. Every other week c. Once a month d. Once every 2 months Once every 3 months е.
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