Below are cos and demand data for china hutch sold by a large eastern furniture wholesler: Demand in units-------------------------------------------800 Unit cost----------------------------------------------------$500 Carying cost as percentage of unit cost--------------------25% Cost of placing an order------------------------------------$125 Required: a) Compute the economic order Quantity b) Determine how many orders will be placed during the year c) Find the minimum total cost of ordering and carrying inventory.
Below are cos and demand data for china hutch sold by a large eastern furniture wholesler: Demand in units-------------------------------------------800 Unit cost----------------------------------------------------$500 Carying cost as percentage of unit cost--------------------25% Cost of placing an order------------------------------------$125 Required: a) Compute the economic order Quantity b) Determine how many orders will be placed during the year c) Find the minimum total cost of ordering and carrying inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Below are cos and demand data for china hutch sold by a large eastern furniture wholesler:
Demand in units-------------------------------------------800
Unit cost----------------------------------------------------$500
Carying cost as percentage of unit cost--------------------25%
Cost of placing an order------------------------------------$125
Required:
a) Compute the economic order Quantity
b) Determine how many orders will be placed during the year
c) Find the minimum total cost of ordering and carrying inventory.
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