For the current year, Naranda & Associates has projected sales of 72,000 barrels, a cost per order of $60.00 and holding costs of $24.00 per barrel. What will be the economic order quantity and what will be the average inventory?
Q: Demand for an item is at the rate of 200 units per day. Stock will be replenished immediately upon…
A: Economic order quantity helps companies minimize the cost of ordering and holding inventory. The…
Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…
A: Given data Economic Order Quantity (EOQ) 2400 units Ordering cost (S) = $200 Holding or carrying…
Q: Describe how a manager determine the criticality of a stock shortage in inventory management
A: In stock shortages, criticality pertains to the inventory item's importance within the inventory. As…
Q: Thomas' Bike Shop, with a 250 day working year, stocks a high-volume item. The average daily demand…
A: In this above problem, I have following information, Average daily demand=70 units and Average Lead…
Q: How helpful is the Economic Order Quantity model for managers ?
A: Economic order quantity is the optimal order quantity that minimizes the overall holding and…
Q: Determine the total inventory-related costs associated with the optimal ordering policy (do not…
A: Given data Annual demand (D) =5 tonnes × 12 converters ×360 days per year =21600 tons per years…
Q: Walrus Company has the following information available concerning one of its inventory items: Cost…
A: Days that can be covered by the safety stock = Safety stock/Average daily demand = 125/25 = 5 days
Q: XYZ has developed the following data from its Material ASafety stock280Average (normally) daily…
A: Below is the solution:-
Q: The following data are for an inventory item in which the EOQ model applies: Given: D =…
A: Economic Order Quantity (EOQ) is a inventory management technique which helps to reduce the total…
Q: William Beville's computer training school, in Richmond, stocks workbooks with the following…
A: Formula:
Q: ITEMS 14 and 15 ARE BASED ON THE FOLLOWING INFORMATION: The following information is available for…
A: Given Information: Annual usage 12,600 units Working…
Q: Davis Supply maintains an average inventory of 2,000 dinosaur skulls for sale to filmmakers. The…
A: Find the given details below: Given Details Average Inventory 2000 Dinosaur skulls Carrying…
Q: The XYZ Company has an annual sale of 20,000 television sets. each inventory item has a value of…
A: Introduction: The term Business refers to an exchange of goods and services between the buyer and…
Q: XYZ has developed the following data from its Material A Safety stock Average (normally) daily use…
A: THE ANSWER IS AS BELOW:
Q: Ezrah is attempting to perform an inventory analysis on one of her most popular beauty products, the…
A: Demand (D)=10,000 units Carry cost(H)=P50 Ordering Cost(S)=P100
Q: The purpose of inventory is a. to fill unused shelf space. b. to keep sales staff busy…
A: Inventories are the goods that are used for the business like raw materials, finished products,…
Q: Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses…
A: Annual Demand (units) = 2000 units Per unit Cost = Php 1000 per unit Holding Cost = 18% of unit cost…
Q: 27- In the economic order quantity model, the optimal quantity (EOQ) is always…
A: The Economic Order Quantity (EOQ) refers to the ideal order quantity that a company should purchase…
Q: Which of the following are used for calculating economic order frequency? i. Total annual…
A: Economic order quantity is the optimal quantity that the business needs to buy the inventory to…
Q: BERNARDS COMPANY LTD is a PRODUCER of fruit juices. The company has an annual demand of 150,000…
A: Annual Demand = D = 150,000 barrels Cost per barrel = C = $30 Ordering Cost = S = $400 Annual…
Q: Describe the ABC inventory system. How is it used to manage inventory? Do you think that it is valid…
A: ABC inventory system is an approach for classifying inventory things supported the items’…
Q: After inventory you found out that there are 10 green shirts, 5 white shirts, and 3 red shirts sold…
A: In the given question, 10 green shirts, 5 white shirts, and 3 red shirts are currently in stock.…
Q: Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where…
A: Annual demand, D = 200*12 = 2400Unit carrying cost, h = 3.333 (per annum? why not given?)Ordering…
Q: Catlea Merchandising is engaged in selling school shoesfor both boys and girls in their teenage…
A: We have Annual demand, D = 32,000 Ordering cost, S = $48 Holding cost, H = $8 Delivery lead time, L…
Q: ABC Company purchased its inventory at a lump price of P20,000. Relative sales value for each type…
A: The Inventory when purchased at a lump sum price, then the cost of inventory will be assigned in the…
Q: after inventory you found out that there are 10 green shirts, 5 white shirts, and 3 red shirts sold…
A: In the given question, 10 green shirts, 5 white shirts and 3 red shirts are currently in the stock.…
Q: Cheryl Hunter is responsible for maintaining adequate hospital supplies at fictional St. Thomas…
A: Inventory management can be stated as the systematic process of sourcing, stocking or storing, and…
Q: William Beville's computer training school, in Richmond, stocks workbooks with the following…
A: Formula:
Q: Information regarding the usage of material Y which shall be required evenly throughout the year by…
A: The reorder point is the quantity of product that a company should have on hand at all times. This…
Q: ABC Company is planning to stock its product which is classified as an inventory item. The company…
A: Given data is Annual demand(D) = 16200 units Carrying cost(H) = 0.28×730=P204.4 Order cost(S) = P220
Q: A product's demand in cach period follows a Normal distribution with mean of 50 and standard…
A:
Q: XYZ has developed the following data from its Material A Safety stock Average (normally) daily use…
A: THE ANSWER IS AS BELOW:
Q: Combate uses 100,000 units of Material X Annually I its production. Ordering cost consists of P1,000…
A: EOQ:- Formula = √(2DS/H) Given:- Demand(D) = 100,000, Ordering cost(S) = P1,000+P4,000 = P5,000,…
Q: OP = DDLT + SS Demand is 300 units a week, lead time is 3 weeks, and safety stock is 200 units.…
A: For the given statement, The thrid option is the correct answer. Order point = 1100 units
Q: Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and…
A:
Q: The following information regarding inventory policy was assembled by the GB Inc. The company uses a…
A: The reorder point is the inventory level at which an order should be placed.
Q: The following information regarding inventory policy was assembled by the GB Inc. The company uses a…
A: Reorder point is the point where the company’s stock needs to be repurchased to avoid the reduction…
Q: Last year, the retailer’s weekly variance of demand was 200 units. The variance of orders was 500,…
A: The bull whip impact at any connection in the store network can be determined by the recipe. Bull…
Q: The following are data of materials inventory for the year 2020 of Mars Corp: Number of pounds…
A: The EOQ is a company's ideal order quantity that reduces overall expenses associated with ordering,…
Q: You have the data on the application during the 6 consecutive years below Requirement / Find the…
A: The simple moving average is the average of the latest figures for the given time period in the…
Q: Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply…
A: Formulate a spreadsheet and find the optimal solution using excel solver as shown below: Note: NWCM…
Q: Peter's order quantity for tocino is 5,000 kilos. Peter maintains a safety stock of Tocino at 500…
A: Given that: Order point = 1,500 kilos. Safety stock = 500 kilos. Daily use = 50 kilos.
Q: Romulo Drugstore sells 10 bottles of Paracetamol syrup Strawberry flavor 60 mL a day, and 15 bottles…
A: Max lead time-10Max sale-15Average lead time-5Average sale-10
Q: Barangay Punta Princesa is trying to decide between two alternative order plans for its inventory of…
A: EOQ is the economic order quantity that a company need to purchase so that its inventory cost will…
Q: Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses…
A: Below is the solution:-
Q: Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses…
A: Economic order quantity is the optimal quantity that the business needs to buy the inventory to…
Q: Explain the two common inventory estimation methods, mentioning key similarities and differences…
A: Inventory estimation refers to the method of determining the value of unsold inventory. Inventory…
Q: How much would be Item X's total annual stockout cost? A. None of the above B. Zero C. Php 8,485 D.…
A: The process of ordering, storing, using, and selling a company's inventory is called inventory…
For the current year, Naranda & Associates has projected sales of 72,000 barrels, a cost per order of $60.00 and holding costs of $24.00 per barrel. What will be the economic order quantity and what will be the average inventory?
Step by step
Solved in 2 steps
- Develop a EOQ solution and calculate total relevant costs for the gross requirements in the following table*. Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 30 30 30 20 10 40 60 *Holding cost =$ 2.50/unit/week; setup cost =$ 150; lead time =1 week; beginning inventory =40. What is the average demand per week? with 2 decimal places): Calculate Economic Order Quantity (EOQ) Develop a EOQ solution (enter your responses as whole numbers). Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 30 30 30 20 10 40 60 Scheduled receipt…Barangay Punta Princesa is trying to decide between two alternative order plans for its inventory of face masks. Irrespective of the plan to be followed, demand for the item is expected to be 1,000 units annually. Under Plan A, Barangay Punta Princesa through their purchasing officer is using a digital platform for ordering: order costs would be Php 40 per order. Inventory holding costs (carrying costs) would be Php 100 per unit per annum. Under Plan B order costs would be Php 30 per order. And holding costs would 20% and unit cost is Php 480. Find out EOQ and Total Inventory cost, then come up with your decision which plan would result in the lowest total inventory cost? can you answer this asap?Barangay Punta Princesa is trying to decide between two alternative order plans for its inventory of face masks. Irrespective of the plan to be followed, demand for the item is expected to be 1,000 units annually. Under Plan A, Barangay Punta Princesa through their purchasing officer is using a digital platform for ordering: order costs would be Php 40 per order. Inventory holding costs (carrying costs) would be Php 100 per unit per annum. Under Plan B order costs would be Php 30 per order. And holding costs would 20% and unit cost is Php 480. Find out EOQ and Total Inventory cost, then come up with your decision which plan would result in the lowest total inventory cost?
- Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where bothtemperature and humidity can be controlled. Emery uses 200 pounds per month of the chemical, estimates the holdingcost to be £3.33 (because of spoilage), and estimates order costs to be £10 per order. The cost schedules of four suppliers are as follows:SEE PHOTO ATTACHED:What quantity should be ordered, and which supplier should be used?The following inventory date have been established for Warriors Company: Order must be placed in multiples of 100 Annual sales are 338,000 units The purchase price per unit is P6 Carrying cost is 20% of the purchase price of the goods Fixed order costs is P48 Three days are required for delivery. What is the EOQ? How many orders should Warriors placed each year? How many units must be order every time? Calculate the total cost of ordering and carrying cost if the order quantity is 4,000 units 4,800 units 6,000 units At EOQWhat are the primary objectives of the Wilson approach, and how does it optimize inventory levels?
- Huki is a distributor of 'Cotton Shirt,' with a weekly demand of 50 units. Each unit costs at $40 with reorder cost at $200 and holding cost at 25% of value a year.a. Determine the economic order quantity (EOQ), holding cost, ordering cost and total costs.a. If the provider could only deliver 50 units at a time, is there any additional expenses?If the economic order quantity= 300, annual demand= 8,000 units, and order costs= $45 per order, what is the holdingcost for P. S. Ravi Metalworks?Emery Pharmaceutical uses an unstable chemicalcompound that must be kept in an environment where both temperatureand humidity can be controlled. Emery uses 800 poundsper month of the chemical, estimates the holding cost to be 50%of the purchase price (because of spoilage), and estimates ordercosts to be $50 per order. The cost schedules of two suppliers areas follows: a) What is the economic order quantity for each supplier?b) What quantity should be ordered, and which supplier should be used?c) What is the total cost for the most economic order size?d) What factor(s) should be considered besides total cost?
- Flora's Fabulous Fontains top product is its Model A. Flora is preparing for her busy season and is building 1,800 Model A fountains. Calculate the gross requirements for each component assuming that there is no beginning inventory. Use the following information: Component Immediate Parent Usage per Parent A none - B A 2 C A 1 D A 3 E A 2 F B 4 G B 2 H D 4 I D 2 J E 1 K E 6 L E 2 M F 3 N F 5 O H 2 P K 1 Q K 2 Put the answers down into the table: (If answer is zero, please enter 0, do not leave any fields blank) Component Gross Requirement A enter the gross requirement B enter the gross requirement C enter the gross requirement D enter the gross requirement E enter the gross requirement F enter the gross requirement G enter the gross requirement H enter the gross requirement I enter the gross requirement J enter the gross requirement…Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table*. Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 30 30 40 70 30 10 70 50 *Holding cost =$ 3.50/unit/week; setup cost =$ 200; lead time =1 week; beginning inventory =40. Develop a lot-for-lot solution (enter your responses as whole numbers). Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 30 30 40 70 30 10 70 50 On-hand at beginning of period 40 On-hand at end of period…At the EOQ, what is the firm’s total inventory cost per year, assuming safety stock = 15 units?