8. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use Maximum daily use Minimum daily use EOQ Cost of placing an order Working days per year Lead time 280 200 240 180 1,000 P20 250 days 6 days What is the normal maximum inventory?
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- 10. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use 280 240 180 1.000 200 Maximum daily use Minimum daily use EOQ Cost of placing an order Working days per year P20 250 days Lead time 6 days What is the average inventory?A products demand in each period follows a Normal distribution with mean of 60 and standard deviation of 10. The order up to level S is 204. Lead time is 2 periods. What is the expected on hand inventory ? Show all formulas used, calculations and results. Do on Black Bd b. What is the stoch out probability. Show all formulas used, calculations and results. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50 Annual cost of placing an order £ 500 Required:(i) Calculate the EOQ (ii) Calculate the average inventory (iii) Calculate the total annual ordering cost (iv) Calculate the total annual inventory cost (excluding the purchase cost)
- Given the following information: Annual sales in units 40,000 Cost of placing an order $58.00 Per-unit carrying costs $2.30 Existing units of safety stock 600 What is the EOQ? Round your answer to the nearest whole number. units What is the average inventory based on the EOQ and the existing safety stock? Use the rounded value of the EOQ from the previous question in your calculations. Round your answer to the nearest whole number. units What is the maximum level of inventory? Use the rounded value of the EOQ from the previous questions in your calculations. Round your answer to the nearest whole number. units How many orders are placed each year? Use the rounded value of the EOQ from the previous questions in your calculations. Round your answer to the nearest whole number. orders per yearThe order cost per order of an inventory is OMR. 60 with an annual carrying cost of OMR. 4 per unit. The annual demand is 12000 units. Calculate: Economic Ordering Quantity, Number of Orders per year and Ordering cost per year. a. 500 units, 20 Orders and 1200 OMR b. 480 units, 20 Orders and 1500 OMR c. 400 units, 20 Orders and 1800 OMR d. 600 units, 20 Orders and 1200 OMRThe ABC co.is planning to stock new product. The ABC co.has developed thefollowing information:Annual usage = 5400 unitsCost of the product = 365 MU/unitOrdering cost = 55 MU/orderCarrying cost = 28%/year of inventory value helda) Determine the optimal number of units per order?b) Find the optimal number of orders/year?c) Find the annual total inventory cost? Please mention formulas and do it in detail so I can understand.
- The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50Annual cost of placing an order £500 Required: (i) Calculate the EOQ (ii) Calculate the average inventory (iii) Calculate the total annual ordering cos (iv) Calculate the total annual inventory cost (excluding the purchase cost)The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 unitsAnnual cost of Holding £1.50Annual cost of placing an order £ 500 1. Calculate the EOQ 2. Calculate the average inventory 3. Calculate the total annual ordering cost 4. Calculate the total annual inventory cost (excluding the purchase cost)Given the following informations annual sales in units 30,000 cost of placing an order $60,00 per unit carrying costs $ 1.50 Existing units of safety stock 300 a what is the EOQ? b. what is the average inventory based on the EOQ and the existing safety stock c. what is the maximum level of inventory? d. how many orders are placed each year?
- Weighted Average Cost Method with Perpetual InventoryThe beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:DateTransactionNumberof UnitsPer UnitTotalJan. 1Inventory7,500$75.00$562,50010Purchase22,50085.001,912,50028Sale11,250150.001,687,50030Sale3,750150.00562,500Feb. 5Sale1,500150.00225,00010Purchase54,00087.504,725,00016Sale27,000160.004,320,00028Sale25,500160.004,080,000Mar. 5Purchase45,00089.504,027,50014Sale30,000160.004,800,00025Purchase7,50090.00675,00030Sale26,250160.004,200,000Required:1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round all total cost amounts to the nearest dollar.Midnight SuppliesSchedule of Cost of Goods SoldWeighted Average Cost MethodFor the Three Months Ended March 31 PurchasesCost of Goods…A company has an average age of inventory (AAI) 55 days; average collection period (ACP)20 days and average payment period (APP) is 10 days. Calculate the following details of thecompany.A. Operating Cycle (OC)B. Cash Conversion Cycle (CCC)A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%.Calculate the following:a. The EOQ in dollars.b. Number of orders per year.c. Cost of ordering, cost of carrying inventory, and total cost.d. How do the costs of carrying inventory compare with the costs of ordering?