Hammond Supplies expects sales of 207,640 units per year with carrying costs of $4.23 per unit and ordering cost of $8.92 per order. Assuming the level of inventory is stable, what is the optimal average number of units in inventory? Round to the nearest whole number.

Hammond Supplies expects sales of 207,640 units per year with carrying costs of $4.23 per unit and ordering cost of $8.92 per order. Assuming the level of inventory is stable, what is the optimal average number of units in inventory? Round to the nearest whole number.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter HD-240 1 2 3 4 6,300 8,820 10,080 12,600 The January 1, 2022, inventory of HD-240 is 2,520 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter and in total for 2022.
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
Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens 46 times over the next year. The carrying cost is $0.04 per zen-zen per year. The order cost is $617 per order. It turns out that the marketing manager has underestimated the zen-zen market. The zen-zens are a smash, and current estimates are that the company will sell 8 million of them per year. Should the inventory manager simply double the EOQ order quantity? Find the new EOQ, and verify that it is the correct order quantity by finding the new carrying cost and new ordering cost. Should the inventory manager simply double the EOQ order quantity? (Select the best response.) A. Yes B. No What is the new EOQ? zen-zens (Round to the nearest whole unit.) What is the new annual carrying cost for the zen-zens? (Round to the nearest dollar.) What is the…
Al-Morooj Co. has the following sales forecasts for its hip waders next year: First Quarter 11000 units Second Quarter 4% increase over first quarter Third Quarter 8% decrease from first quarter Fourth Quarter 4% decrease over first quarter Required: Calculate the Al-Morooj's estimated sales in units for next year.
This year, ABC expects sales of $137,328,000 and a gross profit margin of 16 percent this year, along with an Inventory Turnover Ratio (COGS Basis) of 6.10. What is ABC's projected level of inventory, given these numbers?
Calculate the annual economic order quantity from the attached provided below
A company stocks an item that is consumed at the rate of 35 units each day. Every time an order is placed for new supply, $ 105 must be paid. A unit inventory held in stock will cost $ 0.15 d) What is the total cost if the order quantity is 205 more than EOQ? e) What is the optimum number of orders (rounded to the closest integer) that the company has to place each year? Assume that the company has a standing policy of not allowing shortages in demand.
Two products X and Z are manufactured in a department. Sales for the year 2022 were planned as follows: Product Quarter 1 Quarter 2 Quarter 3 Quarter 4 X 8000 10000 11000 14000 Z 6000 8000 7500 5500 Selling prices in Quarter 1 were estimated as OMR 20 per unit for X and OMR 30 for Z respectively. Average sales return are 5% of Sales and 10% decrease in selling price in each quarter compared to previous one. According to these estimates, which of the following is estimated Sales (OMR) in Quarter 4 for Product X? Select one: a. 266000 b. 159600 c. 185600 d. 193914
Problem: Jasper Jewelry has $150 million in sales. The company expects that its sales will increase 4% this year. Jasper's CFO uses a simple linear regression to forecast the company's inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is as follows: Inventories = $10 + 0.07(Sales) Given the estimated sales forecast and the estimated relationship between inventories and sales, what is your forecast of the company's year-end inventory level? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to two decimal places.
Economic order quantity (EOQ). Tinnendo, Inc. believes it will sell 4 million zen-zens, an electronic game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order zen-zens 25 times over the next year. The carrying cost is $0.01 per zen-zen per year. The order cost is $510 per order. What are the annual carrying cost, the annual ordering cost, and the optimal order quantity for the zen-zens? Verify your answer by calculating the new total inventory cost. What is the annual carrying cost for the zen-zens? (Round to the nearest dollar.)
6
Dream Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Howe anticipates sales of 126,000 units per year, an ordering cost of P4 per order, and carrying costs of P1.008 per unit. The following year, the company learns it can reduce ordering costs to P1 per order but that carrying costs will stay the same at P1.008 per unit. What is the total cost of inventory to be expected?

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