Rainbow Toys orders inventory that costs $50 per unit. The annual holding cost is 20% of unit cost, and ordering cost is $100 per order. Annual demand is 1,200 units. Calculate the Economic Order Quantity.
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- Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Required: 1. Prepare a statement of cost of goods sold in good form. 2. What if the beginning inventory of finished goods decreased by 5,000? What would be the effect on the cost of goods sold?Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?Rainbow Toys orders inventory that costs $50 per unit. The annual holding cost is 20% of unit cost, and ordering cost is $100 per order. Annual demand is 1,200 units. Calculate the Economic Order Quantity.
- 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.A. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Required: 1. Compute the economic order quantity. 2. How many orders would be placed under the EOQ policy? 3. Compute the annual ordering cost for the EOQ. 4. Compute the annual carrying cost for the EOQ. 5. Compute the total inventory-related cost at the EOQ. 6. Previously, the company had been purchasing 5,000 units of product X per order: What is the ordering cost per year under the previous policy? ii. The annual carrying cost? iii. How much money does the company save over the policy of purchasing 5,000 units per order using the EOQ policy? i. B. Kings Company presents the following information: 1. Annual credit sales: P 25,200,000 2. Collection period: 3 months 3. Rate of return: 12% Kings company considers changing its credit term from n/30 to 3/10, 1/30. The following are…Diagnostic Supplies has expected sales of 98,000 units per year, carrying costs of $5 per unit, and an ordering cost of $8 per order. a. What is the economic ordering quantity? Economic ordering quantity b-1. What is the average inventory? Average inventory b-2. What is the total carrying cost? Total carrying cost units units
- A Store has annual demand of 29,000 units. The annual carrying cost for a unit is $15.5, and the ordering cost is $400. The supplier routinely charges the store $17 per unit. However, the supplier has offered a discount price of $15.5 per unit if the store will order 8,800 units. A How much should the store order? B.What will be the total annual inventory cost for that order quantity? DA The store should order 8,800 units. OB. The store should order 7,800 units. OC The total annual inventory cost for that order quantity is $420,175.12 DD. The total annual inventory cost for that order quantity is $511,963.12 OE. The total annual inventory cost for that order quantity is $519,018.18 DF. The store should order 1,223.4 units.Green Tees, an on line retailer of t-shirts, orders 10,000 t-shirts per year from its manufacturer. The carrying cost is $0.10 per shirt per year. The order cost is $550 per order. What is the optimal order quantity for the t-shirt inventory (rounded to the nearest dollar)?2. Hamid Company consumes inventory of 100,000 units of components per year. The carrying cost per unit is RO 3.50. The fixed order cost is RO 20 per order. The production planning is 365-day year. The delivery time is three days. a. Calculate and interpret the Economic Order Quantity (EOQ). b. At what inventory level should Hamid Company place another order. Interpret.
- TS Co has daily demand for ball bearings of 40 a day for each of the 250 working days (50 weeks) of the year. The ball bearings are purchased from a local supplier for $2 each. The cost of placing an order is $64 per order, regardless of the size of the order. The inventory holding costs, expressed as a percentage of inventory purchase price, is 25% per annum. What is the economic order quantity?The ABC Company consumes inventory of 67,500 units of components per year . The carrying cost per unit is RO 1.50 . The fixed order cost is RO 25 per order . The production planning is 365 - day year . a . What is the Economic Order Quantity ( EOQ ) ? Interpret . b . Calculate and interpret the optimal number of orders to be placed. c. If it takes five days to receive an order from suppliers, at what inventory level should ABC Company place another order? Interpret .Massa Machine Tools expects Total sales of 14,000. The price per unit is $6. The firm estimates an ordering cost of $9.96 per order, with inventory cost of $8.84 per unit. What is the optimum order size? (Round to the nearest whole number)