Company ABC stocks item X. Annual demand is approximately 800 units, with each unit costing $30. The supplier maintains a consistent lead time of seven days. Holding costs are $7.50 per unit of average inventory, and the ordering cost is $4 per order. Assume 365 days in a year. What is the economic order quantity? A. 29 B. 35 C. 41 D. 46
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What is the economic order quantity?
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- ne EOQ, reorder point, and safety stock Alexis Company uses 835 units of a product per year on a continuous basis. The product has a fixed cost of $41 per order, and its carrying cost is $4 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a ptions safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate daily usage.) c. Determine the reorder point. d. Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity. a. Alexis' EOQ is units. (Round to the nearest whole number.) b. Alexis' average level of inventory is units. (Round to the nearest whole number.) c. Alexis' reorder point is units. (Round to the nearest whole number.) Which of the following will change if the firm does not hold the…Nowlin Pipe & Steel has projected sales of 19,600 pipes this year, an ordering cost of $5 per order, and carrying costs of $1.60 per pipe. a. What is the economic ordering quantity? Economic ordering quantity b. How many orders will be placed during the year? Number of orders orders c. What will the average inventory be? Average inventory units unitsAn 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 response
- General Accounting22.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?b) Wansam Ltd extracted the following from its records: Monthly demands of Ba Carrying cost per unit Cost of placing an order Minimum usage Maximum usage Re-order period You are required to calculate: Reorder Quantity 2,000units GHC 500 GHC 4,000 50 units per week 150 units per week 5-7 weeks i. ii. Reorder level iii. Minimum Stock level iv. Maximum Stock level V. Average Stock level
- Answer meA) Calculate Economic Ordering Quantity ( EOQ ) if cost of carrying 1 unit in inventory = $24 total demand in units over planning period = 60,000 units ordering cost per order = $800 Common Stock A Common Stock B Probability Return Probability Return .30 11% .20 25% .40 15% .30 6% .30 19% .30 14% .20 22%General Accounting
- Nowlin Pipe & Steel has projected sales of 6,400 pipes this year, an ordering cost of $5 per order, and carrying costs of $1.60 per pipe.a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be?6. Carrying Costs vs. Ordering Costs Based on an EOQ analysis, the optimal order quantity is 4,000 units. Annual inventory carrying costs equal 30% of the average inventory level. The company pays P 10 per unit to buy the product and P 400 to place an order. The monthly demand for the product is 5,000 units. REQUIRED: Determine the following: A) Annual inventory carrying costs. B) Annual inventory ordering costs. C) Total inventory costs.4. Annual Demand for a product is constant at 80 000 units. Costs for placing orders, transportation and receiving consignments are fixed at P1 200. Each inventory cycle costs P50 per unit and comes with a holding cost of 6%. Required Determine the number of units that should be ordered to replenish inventory and number of orders per year. (5 marks)