Queen Manufacturing uses 2,200 switch assemblies per week and then reorders another 2,200. Assume the relevant carrying per switch assembly is $5.90 and the fixed order cost is $620. a. Calculate the carrying costs. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Queen Manufacturing uses 2,200 switch assemblies per week and then reorders another 2,200. Assume the relevant carrying per switch assembly is $5.90 and the fixed order cost is $620. a. Calculate the carrying costs. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:Queen Manufacturing uses 2,200 switch assemblies per week and then reorders another 2,200. Assume the relevant carrying cost
per switch assembly is $5.90 and the fixed order cost is $620.
a. Calculate the carrying costs.
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
b. Calculate the restocking costs.
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
c. Calculate the economic order quantity.
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
d. Calculate the EOQ number of orders per year.
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
a. Carrying costs
b. Restocking costs
c. Economic order quantity
d. Number of orders
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