Outlook Gateways has a demand of 75 Lakhs per year. Setup cost and holding cost are 29 and 35 per unit. Number of pieces in a order includes 2.3 Lakhs per order. Printing is done 300 days and 2 days to deliver this magazine. ⚫What can be the EOQ of this? With above data find the Setup Cost and Holding cost for a year. What is the Reorder Point. ⚫What is the annual demand to production ratio in this case. What does it indicate for the company?
Outlook Gateways has a demand of 75 Lakhs per year. Setup cost and holding cost are 29 and 35 per unit. Number of pieces in a order includes 2.3 Lakhs per order. Printing is done 300 days and 2 days to deliver this magazine. ⚫What can be the EOQ of this? With above data find the Setup Cost and Holding cost for a year. What is the Reorder Point. ⚫What is the annual demand to production ratio in this case. What does it indicate for the company?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...
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Outlook Gateways has a demand of 75 Lakhs per year. Setup cost and holding cost are 29 and 35 per unit. Number of pieces in a order includes 2.3 Lakhs per order. Printing is done 300 days and 2 days to deliver this magazine.
⚫What can be the EOQ of this? With above data find the Setup Cost and Holding cost for a year. What is the Reorder Point.
⚫What is the annual demand to production ratio in this case. What does it indicate for the company?
⚫Launch a magazine and plan the Inventory and Production process in great details. List down your assumptions carefully.
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