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Tresset [83]
3 years ago
15

Tom Bergman, owner and operator of the Earplug Superstore, is reviewing the costs associated with the store’s best-selling heari

ng aid, the BZ15. The data available to Mr. Bergman concerning this device follow. Demand = 25 units/week Order cost = $3/order Holding cos = $1.50/unit/year The Earplug Superstore operates 52 weeks a year. 2) Use the information in Scenario 9.3. Tom cuts the ordering cost in half by implementing a streamlined processing system. How many fewer units should he now order each time he places an order?
Business
1 answer:
ioda3 years ago
3 0

Answer:

73 units

Explanation:

Given:

Demand, D = 25 units/week

Order cost, O = $ 3/ order

Holding cost, H = $ 1.50/ unit/year

Operation time = 52 weeks/year

thus,

the total annual demand = 25 × 52 = 1300 units

Now,

the economic order quantity (EOQ) is given as:

\textup{EOQ}=\sqrt{\frac{2DO}{H}}

where, D is the annual demand

on substituting the values, we get

\textup{EOQ}=\sqrt{\frac{2\times1300\times3}{1.50}}

or

\textup{EOQ}=\sqrt{5200}

or

EOQ = 72.11 units ≈ 73 units

he should now order 73 units at a time

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Growth Rate = (1,200 - 900) * 100 / 900
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6 0
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You work for an advertising agency. You have been assigned to come up with an advertising campaign for a new brand of designer w
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Answer:

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Explanation:

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3 years ago
in construction of a new housing development, which factor of production can be catergorized by land?
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Answer:

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Explanation:

8 0
2 years ago
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3 0
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vazorg [7]

Answer:

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Therefore for computing the net cash from financing activities we simply applied the above formula.

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