Inventory Omega Enterprises has an annual demand for units of inventory of 1,500 per year. The cost of placing an order each time is $75, and each item of inventory costs $3 to store. In this case, what would be the optimal amount of stock that should be ordered?
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- Inventory: Omega Enterprises has an annual demand for units of inventory of 1,500 per year. The cost of placing an order each time is $75, and each item of inventory costs $3 to store. In this case, what would be the optimal amount of stock that should be ordered?Inventory: Omega Enterprises has an annual demand for units of inventory of 1,500 per year. The cost of placing an order each time is $75, and each item of inventory costs $3 to store. In this case, what would be the optimal amount of stock that should be ordered? AnswerA company wishes to establish an EOQ for an item for which the annual demandis $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%.Calculate the following:a. The EOQ in dollars.b. Number of orders per year.c. Cost of ordering, cost of carrying inventory, and total cost.d. How do the costs of carrying inventory compare with the costs of ordering?
- 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 responseAnswer meI am looking for the correct answer to this Financial accounting question with appropriate explanations.
- Hammond Supplies expects sales of 235,880 units per year with carrying costs of $2.18 per unit and ordering cost of $3.1 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.Please solve all the questionsTutor need your help
- The annual demand for an item is 20,000 units. The cost to process an order is $25 and the annual inventory holding cost is $4 per item per year. Given the following price-quantity breaks for purchasing the item: Quantity Price 1-1,999 $2.50 per unit 2,000 or more $2.40 per unit What is the quantity you will order each time? Please provide detailed calculation of the total cost (including inventory cost and purchasing cost) for each quantity discount scenario.Assume Palmer Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is Palmer's minimum costs of ordering and holding inventory?A firm is planning for its financing needs and uses the basic fixed-order-quantity inventory model (EOQ). What is the total cost (TC), including purchasing cost, of the inventory given an annual demand of 12,000 units, ordering cost of $40, a holding cost per unit per year of $5, an EOQ of 500 units, and a cost per unit of inventory of $120?