Consider an organisation that experienced a stock-out or long customer waiting time for its product. Outline the inventory system it uses for this product. Based on what you have learned, describe ways to avoid possible stock-out or long customer waiting time. TS Kitchen Appliance Company has 10 different stores located in various parts of Singapore. Each store has an average demand of 300 units of waffle machines per month. Each unit costs $20. The shipping cost from the supplier in China is $500 each time. The holding cost per year is 15% for any item in the stock. (i) What is the EOQ for waffle machines? (ii) The supplier provides an all-unit quantity discount with a discount of 3% for orders between 3,500 units and 6,999 units. The discount is more, at 5%, for orders of 7,000 units or more. Solve for the best order quantity for this situation. What is the annual cost?

Consider an organisation that experienced a stock-out or long customer waiting time for its product. Outline the inventory system it uses for this product. Based on what you have learned, describe ways to avoid possible stock-out or long customer waiting time. TS Kitchen Appliance Company has 10 different stores located in various parts of Singapore. Each store has an average demand of 300 units of waffle machines per month. Each unit costs $20. The shipping cost from the supplier in China is $500 each time. The holding cost per year is 15% for any item in the stock. (i) What is the EOQ for waffle machines? (ii) The supplier provides an all-unit quantity discount with a discount of 3% for orders between 3,500 units and 6,999 units. The discount is more, at 5%, for orders of 7,000 units or more. Solve for the best order quantity for this situation. What is the annual cost?

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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