Alocal retailer anticipates an annual demand 12000 units of a product. The retailersallows shortages for that product, and these shortages are backordered at a rate of 3 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal order size in units? Round-up to the nearest integer a. 2530 b. 12000 c. None is correct d. 0 e. 250

Q: A moped manufacturing company needs 100,000 units of moped tires for its production per year.The…

A: Economic order quantity was an inventory management costing principle used to find out required…

Q: The ordering cost for a certain product is $8 per order and the holding cost is $1 per year. The…

A: Ordering Cost :— It is the expenses incurred by company for ordering of product.    Holding cost :—…

Q: Example 1. Surge Electric uses 4000 toggle switches a year. Switches are priced as follows. 1 to…

A: Order quantity 1-499,                                         = 816.4965809 Optimal quantity is not…

Q: A local retailer anticipates an annual demand 15000 units of a product. The retailer allows…

A: The inventory management aims to accomplish to reach satisfaction on the custom services…

Q: Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the…

A: The maximum level of inventory is basically expressed as the highest volume or capacity of a company…

Q: A Company estimates that its carrying cost is 20% of the purchase price and its ordering cost at $40…

A: Economic order quantity represents quantity that leads to minimum cost of the inventory.

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A: Total cost of buying the material includes holding cost + ordering cost

Q: Princeton GI Roofing Ltd wants to reduce its total inventory cost using the appropriate EOQ model.…

A: SOlUTION  1-NO OF ORDERS IN YEAR = ANNUAL DEMAND / EOQ. 2- AVERAGE INVENTORY LEVEL = EOQ / 2 3-…

Q: H&M chief demand planner has estimated that 9250,000 units of clothing sold in 2021.H&M cost of…

A: Economic Order Quantity - EOQ helps the company ensure the quantity that needs to order quantity…

Q: Hi Tech Corporation (HTC) expects to order 295,000 memory chips for inventory during the coming…

A: Step 1  Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…

Q: A firm uses 2,400 units of a product per year on a continuous basis. The product carrying costs are…

A: Economic Order Quantity (EOQ) was related with inventory management and it helps to order the…

Q: Alpha retail store predicts an annual demand of 4920 kgs of a food product. It costs RO 100 to make…

A: In order to minimise the total inventory costs that includes ordering costs and inventory holding…

Q: The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: SamaCell has a demand of 2,000 cells per year. The cost of each unit is $80, and the inventory…

A: Economic Order Quantity (EOQ) refers to the concept of estimating the ideal quantity that a business…

Q: The demand for a product of Carolina Industries varies greatly from month to month. The probability…

A: a) Carolina's Monthly order quantity = (300*0.15)+(400*0.25)+(500*0.35)+(600*0.25) = 45+100+175+150…

Q: Item X is a standard item stocked in a company's inventory of component parts. Each year the firm,…

A: EOQ = 2SDH

Q: Demand for an item is 16 units a week. The unit cost of each item $5,000, while the ordering costs…

A: Since we answer upto three sub-parts, we shall answer first three. Please resubmit a new question…

Q: Ndapandula Investment CC sells about 12 000 bags of poulty grain per year. The Holding costs are N$…

A: Company is regularly working to manage the inventory. The inventory is managed in order to…

Q: Phillips Corporation is a major manufacturer of food processors. It purchases motors from Viking…

A: Economic Order Quantity (EOQ):  Economic order quantity is the quantity of order that is purchased…

Q: . Leyla Tas has determined that the annual demand for #6 screws is 100000 screws. Leyla, estimates…

A: Annual Cost = 100,000 Cost per order = 10MU Storage Cost = 1 x 12 x100 = 0.005

Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…

A: Semi annual requirement = 39000 Units Annual requirement (A) = 39000*2 = 78000 Units Price per unit…

Q: A local retailer anticipates an annual demand 15000 units of a product. The retailer allows…

A: Every business operation has to fulfill the demand of inventory without any shortage. So in this…

Q: The Metropolitan Book Company purchases paper from the Atlantic Paper Company. Metropolitan produces…

A: Since we answer up to 3 subparts, we will answer the first three. Please resubmit the question and…

Q: Furnco sells office chairs. Annual demand is normally distributed with a mean of 1040 chairs and a…

A: No of orders to be placed = A ÷ EOQ where A = annual units demanded            EOQ = economic order…

Q: Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and…

A: Level of inventory at which business should place order for the inventory is known as Reorder point.

Q: Sel Computers purchases integrated chips at $350 per chip. The holding cost is $37 per unit per…

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Q: National Co. uses about 200,000 yards of a particular fabric each year. The fabric costs P25 per…

A: The total annual cost is the cost of all the product cost including fixed and variable both. The…

Q: ‏The ABC Company consumes inventory of 67,500 units of components per year . The carrying cost per…

A: Economic Order Quantity: The economic order quantity is the ordering level at which the storage cost…

Q: A Mobile shop sells 5000 mobiles in a year and the sales is relatively constant throughout the year.…

A: Hi student Since there are multiple subparts,we will answer only first three subparts. If you want…

Q: The john equipment company estimates its carrying cost at 15% and its ordering cost at $90 per…

A: We have the following information: Carrying Cost: 15% Ordering Cost: $90 per order Annual…

Q: Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 450 units…

A: Holding costs are referred to those costs which are incurred by the business to store its inventory.…

Q: Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per…

A: EOQ=(2*400*12*119/35)^0.5 =180.67 EOQ=181

Q: Alpha retail store predicts an annual demand of 4920 kgs of a food product. It costs RO 100 to make…

A: In order to minimise the total inventory costs that includes ordering costs and inventory holding…

Q: Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory…

A: Solution:- Carrying cost of inventory means the cost incurred in order to store the inventory.

Q: Lulu hypermarket estimates daily demand of 18 kgs for a product . It costs RO 100 to make and…

A: Following is the answer to the given question

Q: WZY processing company uses 2,400 units of a product per year on a continuous basis. The product…

A: Solution A- EOQ= 2×A×O/C A= Annual demand O= ordering cost C= Carrying cost   EOQ=2×2400×252.05/60…

Q: A company stocks an item that is consumed at the rate of 30 units each day. Every time an order is…

A: As per Bartleby guideline, if questions are interlinked then first three sub parts to be answered.…

Q: Ekor bakery sells doughnut. The annual demand is 10,000 per year. The ordering cost is $21, and…

A: The excess raw material will be having much holding cost and carrying cost. The costs should be…

Q: If ABC would like follow the EOQ model but also maintain a safety stock of 10,000 cases, how much…

A: EOQ, Economic Order Quantity can be defined as the position of ordering the goods according to the…

Q: ABC company uses 8,000 pens every year. For each pen, cach order cost is $30 and the annual holding…

A: The question is based on the concept of Economic Order Quantity. Economic order quantity or Optimal…

Q: requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15%…

A: Economic order quantity is most optimal level of quantity that is required such that it minimises…

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A: Cost of inventory is the total cost of ordering and carrying the inventory.

Q: Faber Manufacturing, Inc., of St. Paul, Minnesota has an economic order quantity considering…

A: The maximum level of inventory is the maximum quantity of material which have to keep in store. We…