Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and receive an order, and it takes 10 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer O a. 247 O b. 154 O c. None is correct O d. 277 O e. 188

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 15PROB
icon
Related questions
Question
Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and receive an
order, and it takes 10 workdays to receive it. The annual holding cost is 15% of purchase price. The price RO 2 per kg.
The company is operating 6 workdays per week in a 52-week year. At what level of inventory in Kgs should the
company be placing orders? Round-up to the nearest integer
O a. 247
O b. 154
O c. None is correct
O d. 277
O e.
188
Transcribed Image Text:Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and receive an order, and it takes 10 workdays to receive it. The annual holding cost is 15% of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer O a. 247 O b. 154 O c. None is correct O d. 277 O e. 188
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Inventory Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning