Question 1 BARTELS Limited expects to sell 8,200 mobile phones this year. The cost of placing an order from its supplier is GH¢200. Each phone costs GH¢600, and carrying costs are 20% of the purchase price. Currently, they order 250 mobile phones at a time. They are however not sure if this is efficient. You have been tasked to help. a. Provide them with an optimal order quantity (round to the nearest whole) b. What savings will accrue to BARTELS Ltd as a result of the switch? c. Based on the EOQ, how many order cycles will BARTELS have for the year? d. If daily demand is 20 mobile phones with a lead time of 2 days and safety stock of 20 phones, what is the Reorder point for Cool Ltd?
Question 1 BARTELS Limited expects to sell 8,200 mobile phones this year. The cost of placing an order from its supplier is GH¢200. Each phone costs GH¢600, and carrying costs are 20% of the purchase price. Currently, they order 250 mobile phones at a time. They are however not sure if this is efficient. You have been tasked to help. a. Provide them with an optimal order quantity (round to the nearest whole) b. What savings will accrue to BARTELS Ltd as a result of the switch? c. Based on the EOQ, how many order cycles will BARTELS have for the year? d. If daily demand is 20 mobile phones with a lead time of 2 days and safety stock of 20 phones, what is the Reorder point for Cool Ltd?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Question 1
BARTELS Limited expects to sell 8,200 mobile phones this
year. The cost of placing an order from its supplier is
GH¢200. Each phone costs GH¢600, and carrying costs are
20% of the purchase price. Currently, they order 250 mobile
phones at a time. They are however not sure if this is efficient.
You have been tasked to help.
a. Provide them with an optimal order quantity (round to the
nearest whole)
b. What savings will accrue to BARTELS Ltd as a result of
the switch?
c. Based on the EOQ, how many order cycles will BARTELS
have for the year?
d. If daily demand is 20 mobile phones with a lead time of 2
days and safety stock of 20 phones, what is the Reorder
point for Cool Ltd?
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