If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the annual ordering cost?
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If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the annual ordering cost?
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- Items purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units. If it costs $5 every time an order is placed for more units and the storage cost is $4 per unit per year, a. What quantity should be ordered each time? b. What is the total ordering cost for a year? c. What is the total storage cost for a year?What is the EOQ for a firm that sells 5,800 units when the cost of placing an order is $5.20 and the carrying costs are $4.00 per unit? Round your answer to the nearest whole number. units How long will the EOQ last? Use the rounded value from the previous question. Assume 365 days in a year. Round your answer to the nearest whole number. days How many orders are placed annually? Assume 365 days in a year. Use the rounded value from the previous question. Round your answer to the nearest whole number. orders per year As a result of lower interest rates, the financial manager determines the carrying costs are now $2.2 per unit. What is the new EOQ? Round your answer to the nearest whole number. units What is the annual number of orders? Assume 365 days in a year. Use the rounded values of the new EOQ and duration of the new EOQ in your calculations. Round your answer to the nearest whole number. orders per yearA moped manufacturing company needs 100,000 units of moped tires for its production per year. The carrying costs of these tires are 10 per unit per year. Fixed ordering cost is 400. What is the optimal number of units should the company order each time in order to minimize total inventory cost? At this optimal quantity, how often should the company order its moped tires? Assume a 365-day year.
- Financial accountingThe ordering cost for a certain product is $8 per order and the holding cost is $1 per year. The annual demand is 2400 units. Consider the following ordering plans: plan 1: Order all 2400 at one time plan 2: Order 400 once each quarter plan 3: Order 100 once each month Determine: (a) Calculate the annual total costs associated with each plan (plan 1, 2 and 3), and compare the costs (total cost, holding costs and ordering cost). (b) Is there another plan, cheaper than any of these? Calculate the total cost of the cheaper or optimal plan; and for the optimal plan determine how many times in a year an order needs to be in place. (c) In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, will the new EOQ increase or decrease then by what percentage.1. The ACE company estimates its annual requirement requirement is 78,000 units at a price of 4 per unit. The carrying cost at 15% and its ordering cost at 90 per order. Compute the following:a) What is the most economical no. of units to order?b) No. of orders to be placed in a year.c) About how often will an order need to be placed?
- How many should the company order per batch so that it can minimize its costs of carrying and ordering costs?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 responseYou have developed the following estimates for procuring an item for your manufacturing operations:? is 3,600 units yearly (10 units per day)? is ₱25 per item? is ₱35 per order? is 25% annuallyThe following two (2) options are available for you:Option 1: the supplier can supply all items at once.Option 2: The supplier can supply 15 items per day.Based on the information you have, which of the above options would you prefer?
- Customers at furniture store demand an average of 6,000 bookcases per year. Each time an order is placed, an ordering cost of $300 is incurred. The annual holding cost for a single desk is 25% of the $200 cost of a bookcase. Assume that the lead time to receive an order is one week. a) Each time an order is placed, how many bookcases should be ordered? b) What is the cycle time, T? c) How many orders should be placed each year? d) Determine the total annual costs of meeting the customers' demands for bookcases.The sales price per unit would be?A hardware store sells paint that has a demand of 9,706 gallons per year. The store purchases the paint from a supplier for 11.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 175 dollars per order. The paint supplier has a lead time of 10 days. What is the annual ordering cost if the store uses the order quantity of 2,103 gallons per order? Assume EOQ model is appropriate. Use at least 4 decimal places.
