Expected annual demand for Galaxy jerseys 14,000 Ordering cost per purchase order $112 Carrying cost per year $10 per jersey Each jersey costs PS $35 and sells for $70. The $10 carrying cost per jersey per year consists of the required return on investment of $5.95 (17% × $35 purchase price) plus $4.05 in relevant insurance, handling, and storage costs. The purchasing lead time is 5 days. PS is open 365 days a year. Requirement 1. Calculate the EOQ. Begin by selecting the formula used to calculate EOQ. (D=Demand in units for one year, P=Ordering cost per purchase order, C=Carrying cost of one unit in stock, Q=Any order quantity.) ModifyingAbove EOQ equals StartRoot StartFraction 2 DP Over Upper C EndFraction EndRoot With Subscript EOQ=2DPC Part 2 (Round your answer to the nearest whole number.) The EOQ is jerseys.
Expected annual demand for Galaxy jerseys 14,000 Ordering cost per purchase order $112 Carrying cost per year $10 per jersey Each jersey costs PS $35 and sells for $70. The $10 carrying cost per jersey per year consists of the required return on investment of $5.95 (17% × $35 purchase price) plus $4.05 in relevant insurance, handling, and storage costs. The purchasing lead time is 5 days. PS is open 365 days a year. Requirement 1. Calculate the EOQ. Begin by selecting the formula used to calculate EOQ. (D=Demand in units for one year, P=Ordering cost per purchase order, C=Carrying cost of one unit in stock, Q=Any order quantity.) ModifyingAbove EOQ equals StartRoot StartFraction 2 DP Over Upper C EndFraction EndRoot With Subscript EOQ=2DPC Part 2 (Round your answer to the nearest whole number.) The EOQ is jerseys.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
|
Expected annual demand for Galaxy jerseys
|
14,000
|
|---|---|
|
Ordering cost per purchase order
|
$112
|
|
Carrying cost per year
|
$10 per jersey
|
Each jersey costs
PS
$35
and sells for
$70.
The
$10
carrying cost per jersey per year consists of the required return on investment of
$5.95
(17%
×
$35
purchase price) plus
$4.05
in relevant insurance, handling, and storage costs. The purchasing lead time is
5
days.
PS
is open 365 days a year.Requirement 1. Calculate the EOQ.
Begin by selecting the formula used to calculate
EOQ.
(D=Demand
in units for one year,
P=Ordering
cost per purchase order,
C=Carrying
cost of one unit in stock,
Q=Any
order quantity.)ModifyingAbove EOQ equals StartRoot StartFraction 2 DP Over Upper C EndFraction EndRoot With Subscript EOQ=2DPC
Part 2
(Round your answer to the nearest whole number.)
|
The EOQ is
|
|
jerseys.
|
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