A product whose EOQ is 40 units experiences an increase in the annual holding cost from $10 per unit to $90 per unit. The revised EOQ is nine times as large.
The Economic Order Quantity (EOQ) is the ideal order quantity that a business should purchase to minimize inventory costs such as inventory holding costs, out-of-stock costs, and order costs.
Economic Order Quantity (also known as Economic Purchase Quantity) is the order quantity that minimizes the total storage and ordering costs in inventory management. One of the oldest classic production planning models. Wikipedia
Economic Order Quantity or EOQ, also known as "Optimal Lot Size", is designed to help businesses determine the optimal order quantity to minimize logistics costs, storage space, shortages, and excess inventory costs calculated. The formula is: EOQ = [2(setup cost)(demand rate)] / square root of holding cost.
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Answer:
The correct answer is (A) Localization strategy
Explanation:
It is one of the most important strategic decisions that companies make. Localization can also influence other costs such as taxes, wages, raw materials and income. Companies make location decisions infrequently, usually because demand has exceeded the current capacity of the plant or due to changes in labor productivity, exchange rate, costs or local attitudes. Companies also relocate their manufacturing facilities or services due to demographic changes or consumer demand. Location alternatives include (1) expanding an existing installation instead of moving it; (2) maintain the current sites while opening facilities somewhere else, or (3) close existing facilities and move to a new location.
The location decision often depends on the type of business. For industrial location decisions, the usual strategy is to minimize costs, although innovation and creativity can also be critical. For retail organizations or professional services, the strategy focuses on maximizing revenue. However, the warehouse location strategy can be guided by a combination of costs and speed of delivery. The objective of the location strategy is to maximize the benefit of the location for the company.
Answer:
Amount to be transferred out of Work in process = 5,400 units * $63.13
= $340,902
Explanation:
Finished goods
opening 1,100
production 5,300
closing - 1,000
Finished good = 5,400 units
Completed goods = finished goods transferred + 20% complete WIP
= 5,400 + 200 units (1000*20%)
= 5,600 units
Total cost = $2,540 + $351,000
=$353,540
Cost per unit = Total cost / Completed goods
= $353,540 /5,600 units
= $63.13
Even though the 200 units (1000*20%) are completed and are included in calculating the cost per unit but they are not transferred to the finished goods only 5,400 units are transferred to finished goods.
The only reason for the 200 units inclusion on calculating the cost per units is that they are complete and in the total cost they are included as they were incurred alongside the 5400 units transferred.
People who work in human services help people overcome obstacles and access services such as counseling, therapy and rehabilitation. They work to improve the lives of those in need who are most in need of these services.
Answer: $615,872.50
Explanation:
The amount the National Health Center will receive is the sum of the future values, 3 years from now, of the annual payments of the fines.
Future value of $100,000 paid 1 year from today:
= 100,000 * (1 + 3.5%)²
= $107,122.50
Future value of $250,000 paid 2 years from now:
= 250,000 * (1 + 3.5%)
= $258,750
Future value of $250,000 paid 3 years from today:
= $250,000
Total is:
= 107,122.50 + 258,750 + 250,000
= $615,872.50
