Clothes, Inc., has an average annual demand for red, medium polo shirts of 25,000 units. The cost of placing an order is $80 and the cost of carrying one unit in inventory for one year is $25. Each shirt costs $35 and they sell for $70 each.          Required:          a.      Use the economic-order-quantity model to determine the optimal order size.          b.      Determine the reorder point assuming a lead time of 10 days and a work year of 250 days.

Q: Martin company uses 625 units of a part each year. The cost of placing one order is $8; the cost of…

A: Economic order Quantity (EOQ) = [(2*Annual Demand * Set up cost)/Carrying cost]

Q: 1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth…

A: in order to carry the optimal quantity that means to be ordered for year. calculation involve such…

Q: For supply item ABC, Andrews Company has been ordering 400 units per week. A new purchasing agent…

A: Economic order quantity is that quantity of goods at which total inventory costs are minimum. It…

Q: Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 uni per…

A: Solution 1-    EOQ =2×A×O/C A= ANNUAL CONSUMPTION O= ORDERING COST C=CARRYING COST/STORAGE COST…

Q: Ottis, Inc., uses 632,025 plastic housing units each year in its production of paper shredders. The…

A: Economic order quantity indicates the units that should be ordered that provide the lowest cost to…

Q: Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The…

A: EOQ stands for Economic Order Quantity. It is the level of inventory that the organization orders at…

Q: The following operating information reports the results of Blue Spruce Company’s production and sale…

A: Sale units = 1500 ( offered to Purchase)  Selling price per unit = $100 Sales Revenue = Sale units x…

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: A manufacturing company placed an order of 24,000 units semiannually at a price of $20 per unit. Its…

A:

Q: Phillip F lamm's Computer Store in Texas sells a printer for $200. Demand is constant during the…

A: Inventory refers to the stock that the company has held for the resale purpose or the goods that are…

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: Morning Glory buys cereal directly from the manufacturer for $20 per case. The company’s annual…

A: Economic order quantity: It can be defined as an optimal quantity that is purchased by the company…

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A: Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…

Q: Samantha Ross is the procurement manager for the headquarters of a large Financial company chain…

A: Given that, Annual demand (A) = 7000 units per year Cost per unit = $120 Holding cost per unit (C) =…

Q: Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is…

A: EOQ or economic order quantity is the ideal order of quantity purchased a company at a certain rate…

Q: Harrowing Company has the following information: Annual demand  =3,500 units Order size = 500…

A: EOQ is used to decide a level of inventory that will give the minimum cost of ordering and holding.

Q: A store sells a product that has the annual demand of 16,156 units. It purchases the product from…

A: At EOQ, total ordering cost and carrying cost is minimum. Total ordering and carrying cost can be…

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

A: EOQ = 2SDH

Q: mith Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory carrying…

A: Inventory carrying cost is the cost of keeping items in stock. The larger the volume of inventory,…

Q: The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet. The annual…

A: Given information is: The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super…

Q: Machine Operator, manufacturer of shelving keeps stock of a wide range of components.   The…

A: Solution Formulas 1- minimum stock level = Reorder level -(Average rate of consumption * Average…

Q: An SKU has an annual demand of 10,000 units, each costing $15, ordering costs are$80 per order, and…

A: Economic Order Quantity:- EOQ is the minimum quantity that one should order to minimize the ordering…

Q: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The…

A: Formula: Annual Ordering cost units = Plastic housing units each year / Current year plastic housing…

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: To make a product it costs $24 per liter. The importation cost is a fixed cost of $ 150 additional…

A: Introduction: Average costs: The average total technique sets the value of inventory items by…

Q: Cool Stuff, Inc. uses 800 units of a product per year on a continuous basis. The product has…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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

A: At Economic Order Quantity the total cost is minimum. Formula: EOQ=2×Annual demand× cost per…

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: TS Co has daily demand for ball bearings of 40 a day for each of the 250 working days (50 weeks) of…

A: We have the following information: TS Co has daily demand for ball bearings of 40 a day for each of…

Q: If Ayayai accepts this order, by how much will its income increase or decrease?

A: We Know that fixed cost remains constant irrespective of the level of activity and variable cost…

Q: A company uses components at the rate of 15,000 units per year, which are bought in at a cost of…

A: Holding cost:-This cost incurred in carrying the inventory in-store, therefore it is also known as…

Q: Customers at furniture store demand an average of 6,000 bookcases per year. Each time an order is…

A: The economic order quantity is the best order quantity for a corporation to purchase in order to…

Q: Joan Zorba orders calculators for her office supply stores. Each calculator cost $35, currently she…

A: Given values in the question:   Cost of calculator (C) = $35 Daily demand (d) = 5 Ordering cost (Co)…

Q: A company needs a specific type of stored materials, with a quantity of 150,000 pieces, the cost of…

A: This question deals with the calculation of EOQ, number of order and when to supply each order.…

Q: [The following information applies to the questions displayed below.]   Shadee Corp. expects to…

A: 1) Working Note:

Q: The XYZ company has traditionally ordered ink refills 80 units at a time. This company estimates…

A: Push systems - These inventory management systems stock and control inventory based on the forecasts…

Q: Ada is running a store to sell soft-drink and snacks. For one soft-drink, given the daily demand is…

A: Basic Information The question is related to the Inventory Management. In this question first we…

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…