A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5640 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then what is the total annual cost of the best option including purchasing cost? O a. 25000 O b. 21619 O c. 29813 O d. 23548 e. None is correct

A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5640 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then what is the total annual cost of the best option including purchasing cost? O a. 25000 O b. 21619 O c. 29813 O d. 23548 e. None is correct

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 21E: This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total...

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A fresh food company in Oman is specialized in apples distribution in Oman . Annual sales forecast is 5400 boxes of apple . It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year . The prices depend on quantities purchased such that the order quantities ( in boxes ) from 1 to 199 at a unit price RO 5 ; quantity 200 to 499 at a unit price 4.5 RO ; and quantity 500 and more at a per unit price of 4 RO . If the discount option is considered then the best order quantity that minimizes the total annual inventory cost is 1)199 2)200 3)176 4)None is correct 5)500
A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5760 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then what is the total annual cost of the best option including purchasing cost? O a. 29813 O b. 24031 Oc. None is correct O d. 21619 O e. 23548
A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 8400 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5: quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the best order quantity that minimizes the total annual inventory cost is Da. 500 O b. 199 None is correct O d. 200 O e. 371
A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5040 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then what is the total annual cost of the best option including purchasing cost? O a. None is correct O b. 25000 O c. 29813 O d. 21136 Ое. 22583 S PAGE NEXT PAGE MAG241C 1500R 144 SURVED O GAMING MONLTOR
Ndapandula Investment CC sells about 12 000 bags of poulty grain per year. The Holding costs are N$ 50.00 per bag per year, and the Ordering costs are about N$ 100.00 per order. The Investment company operates 280 days per year. Determine: I. The optimal economic order quantity. II. The total annual inventory costs III. If the demand increases to 13 000 bags per year, what will the total annual inventory costs amount to?
A company produces motor bikes. It needs 5400 tires every year. It buys tires from a supplier for OMR 20 per tire. The company’s inventory carrying cost is estimated to be 20% of purchase cost and the ordering cost is OMR 50 per order. Calculate: (A) Economic Ordering Quantity. (B) Minimum total inventory cost per year. (C) Ordering quantity for each month (D) Average inventory at any time (E) Optimum order interval (F) Write complete conclusion
A hardware store sells paint that has a demand of 9,706 gallons per year. The store purchases the paint from a supplier for 11.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 175 dollars per order. The paint supplier has a lead time of 10 days. What is the annual ordering cost if the store uses the order quantity of 2,103 gallons per order? Assume EOQ model is appropriate. Use at least 4 decimal places.
A store sells a product that has the annual demand of 16,156 units. It purchases the product from supplier A for $74.4 per unit. The unit inventory carrying cost per year is 14 percent of the unit purchase cost. The cost to place and process an order from the supplier is $107 per order. Supplier A has a delivery lead time of 7 days. The store operates 300 days a year. Assume EOQ model is appropriate. What is the optimal total annual inventory and purchase cost for the store? Use at least 4 decimal places.
Aapki Humaari Beauty LLP requires 12000 units of Bear Shampoo annually as a part of its sales requirement, ordering one month usage at a time. Each shampoo bottle costs Rs 100.The ordering cost per order is Rs 50 and the carrying cost of the average inventory on a yearly basis is 10% You as an adviser to the company advise to buy the most economical order size. The company looks forward for your advice on understanding the concept of economic order size with its conclusion
What is the economic-order quantity (rounded to nearest whole lens)?
Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.3 per bag. What will the optimal maximum inventory level on-hand end of each production run? Round-up to the nearest integer a. 9122 O b. 6737 C. None is correct O d. 6606 O e. 7532
Aapki Humaari Beauty LLP requires 12000 units of Bear Shampoo annually as a part of its sales requirement, ordering one month usage at a time. Each shampoo bottle costs Rs 100.The ordering cost per order is Rs 50 and the carrying cost of the average inventory on a yearly basis is 10% You as an adviser to the company advise to buy the most economical order size. a. The company looks forward for your advice on understanding the concept of economic order size. b. Advise what should be desired quantity as per the economic purchase policy of the company and how much the company may save on account of ordering cost. Note : You can round off any number to lower side for the calculation purpose