ELLA T., Inc. has annual sales of 5,400 units; management decides to establish the EOQ model. The firm has two possible suppliers: Supplier AShipping costs $1,000 Per-unit carrying costs $70Supplier BShipping costs $900 Per-unit carrying costs $81 What is the EOQ for each supplier? Round your answers to the nearest whole number.Supplier A: unitsSupplier B: unitsIf the firm establishes a safety stock of 108 units, what is the firm's average inventory for both suppliers? Use the rounded value from the previous question. Round your answers to the nearest whole number.Supplier A: unitsSupplier B: unitsWhat will be the firm's expected maximum and minimum inventory with each supplier? Use the rounded value from the previous questions. Round your answers to the nearest whole number. Units MinimumMaximumSupplier A: Supplier B: If delivery takes nine days, what should be the firm's level of inventory when it places an order with supplier A? Assume 365 days in a year. Round your answer to the nearest whole number. units

Optimizing inventory management through the determination of the Economic Order Quantity (EOQ) is…

Answered: ELLA T., Inc. has annual sales of 5,400…

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

Related questions

Question

ELLA T., Inc. has annual sales of 5,400 units; management decides to establish the EOQ model. The firm has two possible suppliers:

What is the EOQ for each supplier? Round your answers to the nearest whole number.

Supplier A: units

Supplier B: units
If the firm establishes a safety stock of 108 units, what is the firm's average inventory for both suppliers? Use the rounded value from the previous question. Round your answers to the nearest whole number.

Supplier A: units

Supplier B: units
What will be the firm's expected maximum and minimum inventory with each supplier? Use the rounded value from the previous questions. Round your answers to the nearest whole number.

Units

Minimum Maximum

Supplier A:

Supplier B:
If delivery takes nine days, what should be the firm's level of inventory when it places an order with supplier A? Assume 365 days in a year. Round your answer to the nearest whole number.

units