RCR Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires 5-day lead time. The ordering cost is P25 per order and the carrying cost per unit is 10% of purchase price. (EOQ is 2,400 units). Use 360 days   Determine the following: Annual demand Frequency of order  Total inventory cost Reorder point Reorder point if maximum daily usage is 2000 units  Safety stock

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

A: EOQ = √ 2 X Annual Demand X Odering cost / Holding cost EOQ = √ 2 X 40,000 X 10 / 30 X 15% EOQ = √…

Q: A local whole seller for Lipton tea estimates an annual demand of tea at 4200 kgs. It costs RO 10 to…

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

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

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A: Ordering Cost: The term, Ordering cost refers to the cost incurred for acquiring inputs. These…

Q: A Store has annual demand of 29,000 units. The annual carrying cost for a unit is $15.5, and the…

A:

Q: maximum of 600 boxes. The supplier takes an average of 5 days to deliver the order. During busier…

A: Just for the sake of other students help, I'll solveall the questions given here.1. Reorder Point…

Q: RCR Company has a secret ingredient in its production. This ingredient costs the company P60 each…

A: The reorder point is a management system of inventory that determines when orders for various goods…

Q: The TOPSHOP company has a monthly demand for an item of 1,000 units/month. This company operates…

A: Answer 3A For the given quantity discount =12% is applies Actual unit price =$10Discount…

Q: RYX Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist…

A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…

Q: McDonald ltd is a retailer of fruit juices. The company has an annual demand of 72,500 barrels. The…

A: EOQ is the quantity at which total cost is lower.But if discount is given by seller or ordering and…

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: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…

A: Since there are several subparts, according to Bartleby guidelines, we will answer the first three.…

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A: A maximum stock level seems to be the highest amount of inventory that must not be surpassed within…

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

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

A:

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…

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

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: Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of…

A: Given:  It has 250 working days. Each day, it sells an average of 500 boxes but may sometimes sell a…

Q: YS Company has a secret ingredient in its production. This ingredient costs the company P60 each…

A: SOLUTION-   FORMULA- SAFETY STOCK = (MAXIMUM USAGE - AVERAGE DAILY USAGE ) * LEAD TIME.

Q: Green Tees, an on line retailer of t-shirts, orders 10,000 t-shirts per year from its manufacturer.…

A: Optimal order quantity is also called economic order quantity and is the most cost-effective amount…

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

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A: EOQ is the quantity that minimises total holding cost and which order costs.

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: YS Company has a secret ingredient in its production. This ingredient costs the company P60 each…

A: D = Annual demand in units = 13,680 units per quarter x 4 quarter = 54,720 units  S = Ordering cost…

Q: What is the annual demand for the boxes of candles? 2. How much is the carrying cost of one box of…

A: Economic order quantity is the optimum order quantity which provides with the minimum expense in…

Q: The soft goods department of a large department store sells 175 units per month of a certain large…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: XYZ Inc. needs 325 of a material per month. It costs OMR 100 to make and receive an orderand it…

A: Annual demand=Quantity per month×12=325×12=3,900 kg

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

A: Inventory Control - The aim of inventory control is to achieve maximum efficiency in the management…

Q: Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 50o units. The…

A: Question is based on the concept of cost accounting

Q: Sammy Co. currently sells 1,000 units of product M for P2 each. Variable costs are P1.50. A discount…

A: Contribution from Special order=Units×Contribution per unit=400×P 1.70 - P 1.50=400× P 0.20=P 80

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

A: EOQ:- Economic order quantity model is used to calculate the optimal order size to reduce the cost…

Q: supplier may take 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost…

A: Given: It sells an average of 500 boxes up to maximum 600 boxes. The ordering cost average P400 per…

Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…

A: Ggg

Q: XYZ Inc. needs 400 kgs of a material per month. It costs OMR 100 to make and receive an orderand it…

A: Correct option is as fallows  Re order point = average daily sales × lead time + safety stock

Q: Pioneer Limited purchases a product which has a steady monthly demand of 20 000 units. The product…

A: Economic Order Quantity = [(2 X Annual Demand X Ordering cost per order/ Carrying cost per unit per…

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: RYX Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist…

A: EOQ or Economic Order Quantity is the order quantity that is ideal for a company to maintain with…

Q: Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The…

A: Given: Optimal order quantity = 2,500 units Safety stock = 500 units Price per unit = P4 Annual…

Q: MZE Manufacturing Company has a normal plant capacity of 37,500 units per month. Because of an…

A: Monthly fixed costs and expenses are irrelevant costs because they will not increase with the…

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

A: Solution:- Carrying cost of inventory means the holding cost of inventory paid in order to store and…

Q: Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The…

A: Average inventory level =Optimal order quantity2=2,500 units2=1,250 units

Q: NUBD Co. currently sells 1,000 units of product M for P2 each. Variable costs are P1.50. A discount…

A: Given information, sells 1,000 units of product M for P2 each Variable costs = P1.50 A discount…

Q: HH trading company sells school bags and the annual demand is 2800 bags. It costs the company RM 33…

A: Optimal order quantity is also written as EOQ or economic order quantity. It is the level of…