Answer:
1000
Explanation:
The economic order quantity is given by the formula = Square root of [ (2 * D * S ) / (H) ]
D = Annual Demand = 2000*6=12000 numbers (six rotor for each pump)
S = Unit Order Cost = $ 250 / order
H = Inventory Holding Cost = 10% of Unit Cost = 10% of 60 = $ 6
The economic order quantity is given by the formula = Square root of [ (2 * D * S ) / (H) ]
Economic Order Quantiity = Squareroot of { (2 * 12000 * 250) / (6) }
Economic Order Quantiity = Squareroot of { 1,000,000 }
Economic Order Quantiity = 1000 numbers.
Answer:
<h2>Cost of Inventory = 1000 + 200 = $1200</h2>
Explanation:
Total Demand = 2000
Fixed order quantity = 200
No. of orders to meet this demand = 2000/200 = 10
Cost per order = $100
Total cost of 10 orders = 10 * 100 = $1000
Safety stock = 20
Per unit cost = $10
Cost of safety stock = 20 * 10 = $200
Total inventory = 2020 (Demand + Safety stock)
<h2 /><h2>Cost of Inventory = 1000 + 200 = $1200</h2>
Answer:
to evaluate the company’s stock performance
Explanation:
Managerial information defines that every manager should manage the day to day activities with the help of a hierarchy level from bottom to top and top to bottom. It also helps in making decisions and to organize, track, interpret and visualize information.
Managerial information examines the production for the benefit of business operation. It supports in long-term strategic decisions about the cost of making a product with the help of areas.
Answer:
1. inventory turnover: 10 times
2. Average daily cost of goods sold: $536 per day
3. Number of days’ sales in inventory: 36.5 days
Explanation:
Inventory turnover ratio an efficiency ratio that indicates how many times a company sells and replaces its stock of goods during a particular period
Inventory turnover ratio is calculated by using following formula:
Inventory turnover ratio = Cost of Goods Sold/Average Inventory
In there:
Average Inventory = (Inventory beginning of year + Inventory end of year )/2
In the company:
Average Inventory = (20,500 + 18,628)/2 = $19,564
Inventory turnover = $195,640/$19,564 = 10 times
Average daily cost of goods sold = $195,640/365 = $536 per day
Number of days’ sales in inventory = (1/10)x365 = 36.5 days