Given the following information for a purchased component, what is the total annual cost for the item? • Annual demand= 500,000 • Purchase price = $10 per unit • Order quantity = 100,000 • Order cost = $5 per order • Annual holding cost per unit = $2 O $2.510,100 $510,025 O $510,250 $5,100,250 O $5,100,025

Q: Use the following data of Starfish, Inc. Unit Total Units Units Cost Cost Sold Beginning inventory…

A: Step 1: Determine the total cost of goods available for saleStep 2: Divide the total cost of goods…

Q: Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager…

A: a. Economic Order Quantity (EOQ) is an inventory management formula that determines the ideal order…

Q: explain the Purposes of Inventory?

A: Inventory is the term that refers to the stock or goods, which are important for the operations of…

Q: You have the following information: - Ordering cost: $300/order - Carrying cost (Carrying cost):…

A: Inventory management is described as a process through which items are sourced, stored, and then…

Q: List the major reasons for carrying inventory.

A: 1. Meeting Customer Demand: Inventory is crucial for meeting customer demand promptly and…

Q: So, what precisely does finished-goods inventory serve?

A: Inventory of goods that have gone through entire process of manufacturing and have been turned into…

Q: why and how companies should manage inventory level?

A: Inventory level:- The amount of inventory you have available across your whole distribution network…

Q: List and discuss the chief limitations of EOQ theory.

A: The Economic Order Quantity (EOQ) model is a widely used inventory management technique that helps…

Q: 3. If the lead time is four days and the daily demand is 25, what is the reorder point?

A: Given, Daily demand =  25 units Lead time =  4 days Safety stock = 0

Q: What are the distinctions between Fixed-Order Quantity andFixed-Time Period?

A: Inventory Management Software The warehouse management mechanism is in charge of goods purchasing…

Q: What function does finished-goods inventory play?

A: Finished goods are the products which are at the stage where it has completed the process in which…

Q: Why does the service level depend upon the number of orders per year?

A: Let’s first understand the concept of what is meant by Service level and how does that depends on…

Q: Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager…

A: The primary goal of inventory management is to ensure that a company has the right quantity of…