OrdEco is a social economy enterprise that recycles used computers for resale. Take note of its sales and stock information in the table below to answer the questions that follow. Annual sales 13,000 units Order fee $260 Annual holding cost per unit $2 100 for an order of 1,000 units 1. What is the optimal quantity to order? 2. 2. What would be the total annual cost corresponding to the optimal ordering policy? 3. If you assume that the delivery time for the computers is 15 working days and you want to maintain a safety stock of 10 computers, at what time or at what level of stocks the firm should order knowing that the demand daily is 2 computers?
OrdEco is a social economy enterprise that recycles used computers for resale. Take note of its sales and stock information in the table below to answer the questions that follow. Annual sales 13,000 units Order fee $260 Annual holding cost per unit $2 100 for an order of 1,000 units 1. What is the optimal quantity to order? 2. 2. What would be the total annual cost corresponding to the optimal ordering policy? 3. If you assume that the delivery time for the computers is 15 working days and you want to maintain a safety stock of 10 computers, at what time or at what level of stocks the firm should order knowing that the demand daily is 2 computers?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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OrdEco is a social economy enterprise that recycles used computers for resale.
Take note of its sales and stock information in the table below to answer the questions that follow.
Annual sales 13,000 units
Order fee $260
Annual holding cost per unit $2
100 for an order of 1,000 units
1. What is the optimal quantity to order?
2. 2. What would be the total annual cost corresponding to the optimal ordering policy?
3. If you assume that the delivery time for the computers is 15 working days and you want to maintain a safety stock of 10 computers, at what time or at what level of stocks the firm should order knowing that the demand daily is 2 computers?
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