A retailer has a holding cost of 20% per year. Its annual inventory turns are 8. The retailer buys a product for $60 per unit. What is the average cost in dollars (rounded to two decimal places) to hold each unit of this product in inventory?
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- The purchase price of an item of inventory is $25 per unit. In each three month period the usage of the item is 20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of placing an order for the item is $20. What is the Economic Order Quantity (EOQ) for the inventory item to the nearest whole unit?Johnny Sinclair sells 1,400 electronic water pumps every year. These pump cost P54.30 each. if annual inventory carrying cost are 9.0% and the cost of placing order is P90, what is the total annual inventory cost?A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%.Calculate the following:a. The EOQ in dollars.b. Number of orders per year.c. Cost of ordering, cost of carrying inventory, and total cost.d. How do the costs of carrying inventory compare with the costs of ordering?
- Your company has sales of $97,200 this year and cost of goods sold of $71,200. You forecast sales to increase to $113,100 next year. Using the percent of sales method, forecast next year's cost of goods sold.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 responseWhat is the inventory conversion period for O'Brian's if it has sales of $320,000, an average inventory of $5,333 and a cash conversion cycle of 20 days? Assume the cost of sales is 55% of sales.
- What is the average age of inventory for Patsy if it has sales of P320,000, an average inventory of P5,333, and cash conversion cycle of 20 days ? Assume that the cost of sales is 55% of Sales.A retailer anticipates selling 3,000 units of its product at a uniform rate over the next year. Each time the retailer places an order for a units, it is charged a flat fee of $50. Carrying costs are S30 per unit per year. How many times should the retailer reorder each year and what should be the lot size to mınımize inventory costs? What is the minimum inventory cost? Use the formula ECQ to obtain your answers. They should order times a year units The minimum inventory cost is $A company stocks an item that is consumed at the rate of 50 units per day. It costs the company P20 each time an order is placed. An inventory unit held for a week will cost P0.35. (a) Determine the optimum inventory policy assuming a lead time of 1 week. (b) Determine the optimum number of orders per year (365 days a year).