A local retailer anticipates an annual demand 15000 units of a product. The retailer allows shortages for that product, and these shortages are backordered at a rate of 1.5 OMR per unit backordered. The cost of ordering is 400 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal time between two consecutive order in weeks, assume 52 weeks in a year? Round-up to the nearest integer Oa 16 Ob. 11 Oc 12 Od. 13 O e None is correct Ot 10

A local retailer anticipates an annual demand 15000 units of a product. The retailer allows shortages for that product, and these shortages are backordered at a rate of 1.5 OMR per unit backordered. The cost of ordering is 400 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal time between two consecutive order in weeks, assume 52 weeks in a year? Round-up to the nearest integer Oa 16 Ob. 11 Oc 12 Od. 13 O e None is correct Ot 10

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

An inventory item has a demand of 10,000 units per month. The cost of each unit is $6, and the interest on tied-up money is 10%. The average ordering cost is $250 per order. a) What is the EOQ? units (round your response to the nearest integer). b) What is the optimal number of orders per year? to the nearest integer) c) What is the optimal number of days between any two orders? your response to the nearest integer) d) What is the annual holding cost? $ nearest integer) orders (round your response e) What is the total annual cost of the inventory system? $ to the nearest integer) days (round per year (round your response to the (round your response
Alpha retail store predicts an annual demand of 4920 kgs of a food product. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it. The annual holding cost is 20% of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. What is the expected time (in days) between orders? Round-up to the nearest integer O a. 185 O b. 115 O c. 100 Od. None is correct O e. 111
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).
A company stocks an item that is consumed at the rate of 35 units each day. Every time an order is placed for new supply, $ 105 must be paid. A unit inventory held in stock will cost $ 0.15 d) What is the total cost if the order quantity is 205 more than EOQ? e) What is the optimum number of orders (rounded to the closest integer) that the company has to place each year? Assume that the company has a standing policy of not allowing shortages in demand.
Ada is running a store to sell soft-drink and snacks. For one soft-drink, given the daily demand is 32 bottles with operating 360 days per year. The ordering cost is $10 per order and annual holding cost is $1 per bottle. Lead time is 10 days. Determine the optimal order size Determine the reorder point Determine the safety stock Determine total annual inventory cost Now, daily demand and lead time may vary. Average daily demand is 32 bottles and its standard deviation is 6 bottles.Average lead time is 10 days and its standard deviation is 4 days. Determine the reorder point Determine the safety stock with 95% service level
Golden Gate Novelties (GGN) sells souvenir key chains at the local airport. GGN charges $12.00 per chain. The variable cost for a chain, including the wholesale cost of the chain, packaging, the commission paid to the airport operator, and so on, is $10.40. The annual fixed cost for GGN is $15,000. Required: a. How many cases must Golden Gate Novelties sell every year to break even? Note: Do not round intermediate calculations. b. The owner of GGN believes that the company can sell 12,500 chains a year. What is the margin of safety in terms of the number of chains? a. Break-even point b. Margin of safety chains chains
Faber Manufacturing, Inc., of St. Paul, Minnesota has an economic order quantity considering backordering of 763, a maximum backordering quantity in units of 480, annual holding cost/unit = $3.5; lead time = 1.4 month (the firm operates 12 months per year). If the firm's customers do not object to backordering and each unit backordered costs $ 4.5/year, then: What is the maximum inventory level?
Al Khaleej Inc. needs 400 kgs of a material per month. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it Ihe annual holding cost is 15 % of purchase price. The price RO 1 per kg. The company is operating 6 workdays per week in a 52-week year. At what quantity in kgs you may place a new order? Round-up to the nearest integer Select one: O a. 185 O b. 247 Oc 2// Od. 154 O e. None is correct
I need correct answer and quickly plz