The EOQ for Part B-22 is 2,500 units, and four orders are placed each year. The total annual ordering cost is $1,200. Which of the following is true? a. The cost of placing one order is $4,800. b. The annual demand for the part is 2,500 units. c. The cost of placing one order is $1,200. d. The total carrying cost is $1,200. e. It is impossible to calculate the annual carrying cost given the above information.
The EOQ for Part B-22 is 2,500 units, and four orders are placed each year. The total annual ordering cost is $1,200. Which of the following is true? a. The cost of placing one order is $4,800. b. The annual demand for the part is 2,500 units. c. The cost of placing one order is $1,200. d. The total carrying cost is $1,200. e. It is impossible to calculate the annual carrying cost given the above information.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 8E: Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is 18, and the...
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The EOQ for Part B-22 is 2,500 units, and four orders are placed each year. The total annual ordering cost is $1,200. Which of the following is true?
a. The cost of placing one order is $4,800.
b. The annual demand for the part is 2,500 units.
c. The cost of placing one order is $1,200.
d. The total carrying cost is $1,200.
e. It is impossible to calculate the annual carrying cost given the above information.
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