A new purchasing agent has been hired by company XYZ who wants to start using EOQ methodAnd its supporting decision elements. The following information has been gatheredAnnual demand in units 260,000 unitsWorking days per yearLead time in days26012Ordering cost per purchase orderAnnual unit carrying cost16030Required: (5pts each)a)Find the EOQb) Number of orders to be made per yearc)Average daily demandd)Total ordering coste)Total carrying costWhat is the total relevant cost with the EOQg)Select a ordering amount ABOVE the EOQ, what is the total relevant ordering and total relevant carrving cost and grand total of bothh)IF the company has been ordering in quantity of 1000 units, what is the S savings by now using the EOQ

Economic order quantity also known as economic purchase quantity, is the order quantity that…

Annual demand in units 260,000 units Working days per year Lead time in days 260 12 Ordering cost per purchase order Annual unit carrying cost 160 30 Required: (5pts each) a) Find the EOQ b) Number of orders to be made per year Average daily demand d) Total ordering cost Total carrying cost c) e) f) What is the total relevant cost with the EOQ total alerant

Annual demand in units 260,000 units Working days per year Lead time in days 260 12 Ordering cost per purchase order Annual unit carrying cost 160 30 Required: (5pts each) a) Find the EOQ b) Number of orders to be made per year Average daily demand d) Total ordering cost Total carrying cost c) e) f) What is the total relevant cost with the EOQ total alerant

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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