1. In 2021 ABC company will produce 2,700 units of the product. Each unit of product requires 4 kg of raw materials. To meet these raw materials, the company must buy them through advance orders. The price of raw materials needed is estimated to remain at IDR 5,000 per kg. Booking fee IDR144,000 per order, and a storage fee of IDR 2,000 per kg per year. From this information, calculate (1 year is 360 days) A. The amount of EOQ and the total cost for the procurement of raw materials above B. The most economical frequency of purchasing raw materials in a year C. Reorder Point ( ROP) if the lead time is 2 weeks
1. In 2021 ABC company will produce 2,700 units of the product. Each unit of product requires 4 kg of raw materials. To meet these raw materials, the company must buy them through advance orders. The price of raw materials needed is estimated to remain at IDR 5,000 per kg. Booking fee IDR144,000 per order, and a storage fee of IDR 2,000 per kg per year. From this information, calculate (1 year is 360 days) A. The amount of EOQ and the total cost for the procurement of raw materials above B. The most economical frequency of purchasing raw materials in a year C. Reorder Point ( ROP) if the lead time is 2 weeks
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 54P
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Please solve the sub parts A,B,and C. Please no reject im needed in 120 minutes thank u
Transcribed Image Text:1. In 2021 ABC company will produce 2,700 units of the product. Each
unit of product requires 4 kg of raw materials. To meet these raw
materials, the company must buy them through advance orders. The
price of raw materials needed is estimated to remain at IDR 5,000 per
kg. Booking fee IDR144,000 per order, and a storage fee of IDR 2,000
per kg per year. From this information, calculate (1 year is 360 days)
A. The amount of EOQ and the total cost for the procurement of raw
materials above
B. The most economical frequency of purchasing raw materials in a
year
C. Rec
ler Point ( ROP) if the lead time is 2 weeks
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