Ahmad Enterprise requires 40,000 gallons of material annually, the cost of placing an order is RM40;the annual carrying cost per gallon is RM3.Required:(a) Determine the EOQ from potential order size of 300, 400, 500, 600, 700 and 800 gallons byconstructing a table. (Refer to the sample given)OrdersizeNumber ofordersTotal ordercosts (RM)2AverageInventory(b) Use the EOQ formula to verify your answer to part (a)Total carryingcost ($)Total order &carrying cost(RM)2/5

The objective of the question is to determine the Economic Order Quantity (EOQ) for Ahmad…

Answered: Ahmad Enterprise requires 40,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Help solve all questions AXY LTD company is planning to use the economic order quantity model to determine the optimal order levels of raw materials. Material Z is consumed evenly over the year and the current usage is 120,000 units of a particular item in the year ahead. The item is purchased in boxes and each box containing 12 units of the material Z, at a price of RM252 per box. A safety inventory of 250 boxes is kept. The cost of placing and handling orders is estimated to be RM6,300, which is based cost incurred for similar orders that have already made. The cost of RM6,300 was for 30 orders. The inflation of 2 per cent should be added to the above ordering costs. Besides, the company estimates to be charged the transporation cost of RM15 per order. It should be assumed that ordering costs change in proportion to the number of orders place. Other costs which relate to material Z such as insurance, interest and space costs for a year, were calculated at 15 % of the purchase price.…
You are in charge of inventory control of a highly successfulproduct retailed by your firm. Weekly demand for this itemvaries, with an average of 200 units and a standard devia-tion of 16 units. It is purchased from a wholesaler at a cost of$12.50 per unit. You are using a continuous review system tocontrol this inventory. The supply lead time is 4 weeks. Plac-ing an order costs $50, and the inventory carrying rate peryear is 20 percent of the item’s cost. Your firm operates 5 daysper week, 50 weeks per year.a. What is the optimal ordering quantity for this item?b. How many units of the item should be maintained assafety stock for 99 percent protection against stockoutsduring an order cycle?c. If supply lead time can be reduced to 2 weeks, what is thepercent reduction in the number of units maintained assafety stock for the same 99 percent stockout protection?d. If through appropriate sales promotions, the demand variabil-ity is reduced so that the standard deviation of weekly demandis…
Tony uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consumption is 80,000 units, Cost to place one order is P1,200, Cost per unit is P 50 and carrying cost is 6% of Unit cost. Find EOQ, No. of order per year, Ordering Cost and Carrying Cost and Total Cost . Prepare a table of validation.
Kindly provide the correct option for number 6. Thankyou
Oo.8. Subject :- Account
Please assist with D, E and F urgently
: A newsvendor purchases units for $10 and sells each one for $18. Inventoryis salvaged for $6. He orders 45,000 units and expected sales are 35,000. What is hisexpected profit?
A company has annual demand for its product of 800,000 units. Eachunit costs $10. Ordering costs are $400 per order and the annual holdingcost per unit is $0.85.A 0.65% discount is available on all orders of atleast 15,000 units and a 0.75% discount for orders of at least 35,000units.Required:-Calculate the optimum order level to reduce total inventory costs
Olympia Productions Incorporated makes award medallions that are attached to ribbons. Each medallion requires 18 inches of ribbon. The sales forecast for March is 2,000 medallions. Estimated beginning inventories and desired ending inventories for March are as follows: (Assume 18 inches = 0.5 yards) Estimated Beginning Medallions Ribbon (yards) Inventory 1,100 70 Desired Ending Inventory 750 23 Required: a. Calculate the number of medallions to be produced in March. b. Calculate the number of yards of ribbon to be purchased in March. a. Number of medallions produced b. Number of yards of ribbon purchased
Please help me with show all calculation thanku and all answers
Octopus Company provides you with the following information regarding its inventory: Maximum lead time 5 weeks Minimum lead time 2 weeks Normal lead time 3 weeks Normal weekly usage 4 000 units Interest rate 5% Cost price per unit R20 per unit Inventory carrying cost R7 per unit Ordering cost R30 per order Maximum weekly usage 4 000 units Minimum weekly usage 3 000 units Required: Calculate Number of orders per year 166.53 times 1700 times 155.63 times 167.53 times None of the above

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