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konstantin123 [22]
3 years ago
12

order for the auto parts shop is $80; the holding cost of carrying 1 unit is $1.2 per year. The shop has 360 working days per ye

ar. The lead time is usually 12 working days. Determine the total carrying cost.
Business
2 answers:
CaHeK987 [17]3 years ago
8 0

Question:

The question is incomplete. See the complete question and the answer below:

An auto parts shop carries an oil filter for trucks. The annual demand for the oil filter is roughly 1200 units. The ordering cost per order for the auto parts shop is $80; the holding cost of carrying 1 unit is $1.2 per year. The shop has 360 working days per year The lead time is usually 12 working days.

Determine the total carrying cost.

Answer:

Total carrying  cost =$240

Explanation:

Given Data;

Annual demand (D) = 1200

Ordering cost (w) = $80

Per unit cost (cn) = $1.2

calculating the economic order quantity (EOQ) using the formula;

EOQ = √[(2Dw)/cn]

Where D = annual demand

w = ordering cost

cn = per unit cost

Substituting into the formula, we have

EOQ = √[(2*1200*80)/1.2]

EOQ = √(192,000/1.2)

         = √160000

         = 400 units

Number of orders = 1200/400

                              = 3 orders

Therefore,

Total carrying  cost = number of order * ordering cost

                                 = 3 * $80

                                  = $240

Galina-37 [17]3 years ago
4 0

Answer:

Total carrying cost is $240.

Explanation:

EOQ=√(2*D*Co)/Cn

EOQ= 400 units

Annual carrying cost= (EOQ/2)*Cn

=(400/2)*1.20

=$240

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Answer:

1.

The annual net cost savings promised by the automated welding machine

Annual Costs savings in replacing 6 welders $108,000

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A. The Net Present value is $72,227. Kindly refer to the attached document for the clear presentation

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7 0
3 years ago
The following information is available for Rodriguez Industries:
shepuryov [24]

Answer:

$183,200

Explanation:

Given that,

Direct labor = $86,000

Total current manufacturing costs = $381,000

Manufacturing overhead is applied to production:

= 130% of direct labor cost

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= $111,800

Total manufacturing costs = Direct material + Direct labor + Manufacturing overhead.

$381,000 = Direct material + $86,000 + $111,800

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A company is considering the purchase of new equipment for $57,000. The projected annual net cash flows are $23,400. The machine
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Answer:

Net Present Value = $3,304.069

Explanation:

<em>To determine whether or not the investment was right, we will need to determine the net present value of the investment (NPV). </em>

<em>The NPV is the difference between the present value PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>

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