Please answer all 3 questions. Thank you! 1. A company that operates 300 days a year requires 928 units of product B annually. Thesupplier has a lead time of 4 days to deliver the goods. What is the re-order point?2. Based on the records of ABC company, the annual demand for item HP26 has annualdemand of 6,582 units. The ordering cost per order is PhP105, and the holding per unitper year cost is PhP136.a. What is the Economic order quantity?b. What is number of times the company will order?C.What is the annual carrying cost?d. What is the annual ordering cost?e.What is the total inventory costs incurred at EOQ?3. A restaurant serves an average of 623 desert (leche flan) servings every week. Theger places an order of 1,000 servings every time she calls the supplier. Recordshows that ordering cost per order is PhP30, and the holding cost per serving per year isPhP5.00.a. What is the current annual inventory costs incurred by the restaurant.b. If EOQ is used, what will be the inventory cost incurred by the restaurant each year?c. What order quantity would you recommend for the restaurant? Why?English (Philippines)US keyboardTo switch input methWindows key+Space.

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Answered: 1. A company that operates 300 days a…

1. A company that operates 300 days a year requires 928 units of product B annually. The supplier has a lead time of 4 days to deliver the goods. What is the re-order point?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 19P

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Question

Please answer all 3 questions. Thank you!

1. A company that operates 300 days a year requires 928 units of product B annually. The
supplier has a lead time of 4 days to deliver the goods. What is the re-order point?
2. Based on the records of ABC company, the annual demand for item HP26 has annual
demand of 6,582 units. The ordering cost per order is PhP105, and the holding per unit
per year cost is PhP136.
a. What is the Economic order quantity?
b. What is number of times the company will order?
C.
What is the annual carrying cost?
d. What is the annual ordering cost?
e.
What is the total inventory costs incurred at EOQ?
3. A restaurant serves an average of 623 desert (leche flan) servings every week. The
ger places an order of 1,000 servings every time she calls the supplier. Record
shows that ordering cost per order is PhP30, and the holding cost per serving per year is
PhP5.00.
a. What is the current annual inventory costs incurred by the restaurant.
b. If EOQ is used, what will be the inventory cost incurred by the restaurant each year?
c. What order quantity would you recommend for the restaurant? Why?
English (Philippines)
US keyboard
To switch input meth
Windows key+Space.

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