Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and receive an order, and it takes 10 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer O a. 247 O b. 154 O c. None is correct O d. 277 O e. 188

Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and receive an order, and it takes 10 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer O a. 247 O b. 154 O c. None is correct O d. 277 O e. 188

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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Kren processing company uses 2,400 units of a product per year on a continuous basis. The product carrying costs are at P60 per year and ordering costs are P252.05 per order. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. (a) Calculate the economic order quantity. (b) Calculate the total cost per year to order and carry this item.
Phyllis Limited produces a product called SOMUAH. The manufacture of this product requires raw materials per month of 1,000kg and this is even throughout the year. The ordering cost per order is GH₵ 250 and each kilogram costs GH₵ 25.00. Annual holding cost is estimated at 20% of the cost of a kilogram of material. Required: Calculate the following: a) The Economic Order Quantity (EOQ) b) Annual Inventory Cost
The annual demand for a certain product is 11,340 units. The company informs you that every time an order is placed for this product the cost per order incurred is £100. You are also told that the cost of holding one unit fora year is £0.7. What is the economic order quantity of the product?
XYZ Inc. needs 400 kgs of a material per month. It costs OMR 100 to make and receive an orderand it takes 10 workdays to receive it. The annual holding cost is 15% of purchase priceThe price OMR 2 per kg. The company is operating 6 workdays per week in a 52-week year. At what level of inventory in should the company be placing orders? Round-up to the nearest integer : a. 277 b. 154 C. 247 d. None is correct E. 188
22.Store B orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. a) What is Store B's weekly inventory holding cost if lead time is two weeks? b) What is Store B's weekly inventory holding cost per unit?
Example 62(a). A manufacturing firm purchases 2000 units of a particular item per year at a unit cost of Rs 80. The ordering cost per order is Rs 50 and the inventory carrying cost is 25% of the value of the average inventory. Find the optimum order quantity and the minimum total cost, If the supplier offers a 5% discount for purchases in lots of 1000, should the offer be accepted?
Pioneer Limited purchases a product which has a steady monthly demand of 20 000 units. The product costs R100 per unit. The ordering cost is R5 per order. The holding cost is 10% of the unit purchase price. Which one of the following represents the annual economic order quantity (rounded off to the next whole number)? Select one: O A. 142 О В. 980 О С. 283 O D. 490
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
XYZ Inc. needs 325 kgs of a material per month. It costs OMR 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 15% of purchase price. The price OMR 3 per kg. The company is operating 6 days per week. What is the minimum annual total cost in OMR? Round-up to the nearest integer a. 12184 b. None is correct c.12000 d. 8175 e. 9000
4. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma. Example: 10,000 Required: a. Compute the economic order quantity. b. How many orders would be placed under the EOQ policy? c. Compute the annual ordering cost for the EOQ. d. Compute the annual carrying cost for the EOQ. e. Compute the total inventory-related cost at the EOQ.
Customers at furniture store demand an average of 6,000 bookcases per year. Each time an order is placed, an ordering cost of $300 is incurred. The annual holding cost for a single desk is 25% of the $200 cost of a bookcase. Assume that the lead time to receive an order is one week. a) Each time an order is placed, how many bookcases should be ordered? b) What is the cycle time, T? c) How many orders should be placed each year? d) Determine the total annual costs of meeting the customers' demands for bookcases.
15. MM Co. expects total sales of P10,000. The price per unit is P5. The firm estimates an ordering cost of P7.50 per order, with an inventory cost of PO.70 per unit. What is the optimum order size? A. 147 units C. 327 units D. 463 units B. 207 units