Raymond Bro. has been buying a given item in lots of 900 units, which is three months’ supply. The cost per unit is $12 and the order cost is $16 per order and the carrying cost is 25%.   Required: How much Raymond Bro. can save per year by buying in most economical quantities?

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Q: Discuss the relationship between Economic Order Quantity and Just-In-Time inventory system. Which…

A: 1. Economic Order Quantity (EOQ):The optimal order quantity (EOQ), which is a traditional inventory…

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A: EOQ FormulaWhere:D is the annual demand for the product.S is the ordering cost per order.H is the…

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A: The formula of calculating the Economic Order Quantity is

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A: Reorder point is the sum of demand during lead and safety stock.

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A:

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Q: Explain the differences between inventory carrying costs and ordering costs.

A: Here are the differences in ordering costs and inventory carrying costs:

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A: Inventory are the material i.e Raw material work in progress finished goods

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A: EOQ = √ [ 2*D*O / C ]   Annual Demand D = 800 Order Cost O = 20 Carrying Cost C = 90*0.14 =  12.6

Q: Use ABC analysis to determine the items deserving mostattention and tightest inventory control

A: ABC analysis is a tool for classifying products based on their stock requirements. It's difficult to…

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A: given, most economical = 50 boxes  each box costs = $434 holding cost = 20% assumption = 365

Q: Determine which delivery alternative would be most economical for 70 boxes of parts. Each box costs…

A: The above problem is related to shipment-related issues. The detailed solution is given below;

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A: Economic order quantity is the order quantity that helps the company to reduce the holding and…

Q: Which inventory methods are mostly used in groceries stores and why? What are the benefits ?

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