Bundle: Contemporary Financial Management, 14th + MindTap Finance, 1 term (6 months) Printed Access Card
14th Edition
ISBN: 9781337587563
Author: MOYER, R. Charles; McGuigan, James R.; Rao, Ramesh P.
Publisher: Cengage Learning
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Chapter 18, Problem 21P
a)
Summary Introduction
To calculate: The placing time of the orders.
b)
Summary Introduction
To calculate: The average inventory and yearly carrying costs.
c)
Summary Introduction
To calculate: The reorder point.
d)
Summary Introduction
To calculate: The safety stock.
e)
Summary Introduction
To calculate: The average inventory and yearly carrying costs.
e)
Summary Introduction
To calculate: The reorder point.
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Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer. Green Trees plans on ordering t-shirts several times over the next year. The firm receives 2,500 t-shirts each time it orders. The carrying cost is $0.10 per shirt per year. The order cost is $500 per order. What is the annual ordering cost of the t-shirt inventory (rounded to the nearest dollar)?
A store sells a product that has the annual demand of 16,156 units. It purchases the product from
supplier A for
$74.4 per unit. The unit inventory carrying cost per year is 14 percent of the unit purchase cost.
The cost to
place and process an order from the supplier is $107 per order. Supplier A has a delivery lead time
of 7 days.
The store operates 300 days a year. Assume EOQ model is appropriate. What is the optimal total
annual
inventory and purchase cost for the store?
Use at least 4 decimal places.
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
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O e.
188
Chapter 18 Solutions
Bundle: Contemporary Financial Management, 14th + MindTap Finance, 1 term (6 months) Printed Access Card
Ch. 18 - Prob. 1QTDCh. 18 - Prob. 2QTDCh. 18 - Prob. 3QTDCh. 18 - Prob. 4QTDCh. 18 - Prob. 5QTDCh. 18 - Prob. 6QTDCh. 18 - Prob. 7QTDCh. 18 - Prob. 8QTDCh. 18 - Prob. 9QTDCh. 18 - Prob. 10QTD
Ch. 18 - Prob. 11QTDCh. 18 - Prob. 12QTDCh. 18 - Prob. 13QTDCh. 18 - Prob. 14QTDCh. 18 - Prob. 15QTDCh. 18 - Prob. 16QTDCh. 18 - Prob. 17QTDCh. 18 - Prob. 18QTDCh. 18 - Prob. 19QTDCh. 18 - Prob. 20QTDCh. 18 - Prob. 21QTDCh. 18 - Prob. 22QTDCh. 18 - Prob. 1PCh. 18 - Prob. 2PCh. 18 - Prob. 3PCh. 18 - Prob. 4PCh. 18 - Prob. 5PCh. 18 - Prob. 6PCh. 18 - Prob. 7PCh. 18 - Prob. 8PCh. 18 - Prob. 10PCh. 18 - Prob. 11PCh. 18 - Prob. 12PCh. 18 - Prob. 13PCh. 18 - Prob. 14PCh. 18 - Prob. 15PCh. 18 - Prob. 16PCh. 18 - Prob. 17PCh. 18 - Prob. 18PCh. 18 - Prob. 19PCh. 18 - Prob. 20PCh. 18 - Prob. 21P
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