The Economic order quantity. Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

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Answer 1

Question

Chapter 12, Problem 28P

a)

Summary Introduction

To determine: The Economic order quantity.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The quantities to be ordered and supplier to be selected.

c)

Summary Introduction

To determine: The total cost for most economic order quantities.

d)

Summary Introduction

To determine: The factors to be considered besides total cost.

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Emery Pharmaceutical uses an unstable chemicalcompound that must be kept in an environment where both temperatureand humidity can be controlled. Emery uses 800 poundsper month of the chemical, estimates the holding cost to be 50%of the purchase price (because of spoilage), and estimates ordercosts to be $50 per order. The cost schedules of two suppliers areas follows: a) What is the economic order quantity for each supplier?b) What quantity should be ordered, and which supplier should be used?c) What is the total cost for the most economic order size?d) What factor(s) should be considered besides total cost?

Chris Sandvig Irrigation, Inc., has summarizedthe price list from four potential suppliers of an undergroundcontrol valve. See the accompanying table. Annual usage is2,400 valves; order cost is $10 per order; and annual inventory holding costs are $3.33 per unit.Which vendor should be selected and what order quantityis best if Sandvig Irrigation wants to minimize total cost?

please show work in excel The New Haven Foundation gave a grant to the Affordable Computers Co.(ACC) to manufacture low cost computers for children in developing countries. ACC needs 3000 memory chips per month for use in producing these hardware. The ordering cost is 12 dollars, and holding cost is 0.3 dollars per chip per year. a) What is the economic order quantity for the memory chips? b) Based on your answer to part (a), what would be the time between orders? (Hint: Q/D)

Answer 2

Question

Chapter 12, Problem 28P

a)

Summary Introduction

To determine: The Economic order quantity.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The quantities to be ordered and supplier to be selected.

c)

Summary Introduction

To determine: The total cost for most economic order quantities.

d)

Summary Introduction

To determine: The factors to be considered besides total cost.

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Answer 3

Question

Chapter 12, Problem 28P

a)

Summary Introduction

To determine: The Economic order quantity.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The quantities to be ordered and supplier to be selected.

c)

Summary Introduction

To determine: The total cost for most economic order quantities.

d)

Summary Introduction

To determine: The factors to be considered besides total cost.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 28P

a)

Summary Introduction

To determine: The Economic order quantity.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The quantities to be ordered and supplier to be selected.

c)

Summary Introduction

To determine: The total cost for most economic order quantities.

d)

Summary Introduction

To determine: The factors to be considered besides total cost.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 28P

a)

Summary Introduction

To determine: The Economic order quantity.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The quantities to be ordered and supplier to be selected.

c)

Summary Introduction

To determine: The total cost for most economic order quantities.

d)

Summary Introduction

To determine: The factors to be considered besides total cost.

Answer 6

Chapter 12, Problem 28P

a)

Summary Introduction

To determine: The Economic order quantity.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Answer 7

Chapter 12, Problem 28P

a)

Summary Introduction

To determine: The Economic order quantity.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Answer 8

b)

Summary Introduction

To determine: The quantities to be ordered and supplier to be selected.

Answer 9

b)

Summary Introduction

To determine: The quantities to be ordered and supplier to be selected.

Answer 10

c)

Summary Introduction

To determine: The total cost for most economic order quantities.

Answer 11

c)

Summary Introduction

To determine: The total cost for most economic order quantities.

Answer 12

d)

Summary Introduction

To determine: The factors to be considered besides total cost.

Answer 13

d)

Summary Introduction

To determine: The factors to be considered besides total cost.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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Solution Summary: The author explains the economic order quantity for vendor A and vendor B.

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To determine: The quantities to be ordered and supplier to be selected.

To determine: The total cost for most economic order quantities.

To determine: The factors to be considered besides total cost.

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