What is the economic order quantity?General accounting Company ABC stocks item X. Annual demand is approximately800 units, with each unit costing $30. The supplier maintains aconsistent lead time of seven days. Holding costs are $7.50 per unitof average inventory, and the ordering cost is $4 per order. Assume365 days in a year.What is the economic order quantity?A. 29B. 35C. 41D. 46

Step 1:Economic Order Quantity (EOQ) is a formula used in inventory management to determine the…

Answered: Company ABC stocks item X. Annual…

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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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 units
C E H The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00 per unit. The ordering cost is $10.00 per order, and the annual holding cost is estimated at 15% of the unit value. 1. What is the EOQ for the ABC? 2. What is the total annual inventory cost for the mother board if it is ordered in economic quantities? 3. How many orders should be placed each year? D Demand 40000 units H Holding Cost S Ordering Cost 4.5 $/unit/yr 10 $/order Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Quantity Average Total Holding Cost Total Ordering Cost Total COST = 100 200 300 400 500 1000 2000
me EOQ, reorder point, and safety stock Alexis Company uses 905 units of a product per year on a continuous basis. The product has a fixed cost of $49 per order, and its carrying cost is $5 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 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. ents un a. Alexis' EOQ is units. (Round to the nearest whole number.) eText edia Librai al Calculat r Resource Enter your answer in the answer box and then click Check Answer. ic Study 3 parts remaining es Clear All Check Answer unication Tools > OK 10 Type here to search 5/1 insert
An 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
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?
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 me
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?
Exercises Outdoor Living Manufacturers uses 1,000 units of a product per year. Its fixed cost is $28 per order, while the carrying cost is $5 per unit per year. The lead time is 5 days and, therefore, the firm keeps 7 days' usage in inventory as safety stock. (Note: Use a 365-day year where required.) a. Calculate the EOQ and the average inventory. b. How many orders will Outdoor Living Manufacturers place during 1 year? c. When should Outdoor Living Manufacturers place its orders? 15
can you help me answer A.
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)

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