1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
slavikrds [6]
3 years ago
8

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operat

ion.​ Thomas's fastest-moving inventory item has a demand of 6 comma 100 units per year. The cost of each unit is ​$98​, and the inventory carrying cost is ​$9 per unit per year. The average ordering cost is ​$29 per order. It takes about 5 days for an order to​ arrive, and the demand for 1 week is 122 units.​ (This is a corporate​ operation, and there are 250 working days per​ year). ​a) What is the​ EOQ? 198.27 units ​(round your response to two decimal​ places). ​b) What is the average inventory if the EOQ is​ used? 99.14 units ​(round your response to two decimal​ places). ​c) What is the optimal number of orders per​ year? 30.76 orders ​(round your response to two decimal​ places). ​d) What is the optimal number of days in between any two​ orders? 8.12 days ​(round your response to two decimal​ places). ​e) What is the annual cost of ordering and holding​ inventory? ​$ nothing per year ​(round your response to two decimal​ places).
Business
1 answer:
Sidana [21]3 years ago
8 0

Answer: SEE EXPLANATION

A. 198.27 UNITS

B. 99.14 UNITS

C. 30.76 ORDERS

D. 8.12 DAYS

E. $1,784.43

Explanation:

Given the following ;

Annual order = 6,100

Carrying cost = $9 per unit per year

Ordering cost = $29

A) EOQ =sqrt[( 2 × Annual order × (ordering cost ÷ carrying cost)]

EOQ = sqrt[2 ×6100 × (29÷9)]

EOQ = sqrt(12200 × 3.22222222)

EOQ = 198.27 units

B.) AVERAGE INVENTORY :

EOQ ÷ 2

198.27 ÷ 2 = 99.14 UNITS

C.) Optimal number of orders per year:

Demand / order per year

6,100 ÷ 198.27 = 30.76 orders

D.) Optimal number of days between two orders:

Number of working days ÷ optimal number of orders

250 ÷ 30.76 = 8.12 days.

E.) Annual cost of ordering and holding inventory:

$198.27 × $9 = $1,784.43

You might be interested in
What is a federal reserve note in simple terms?
valina [46]
Federal reserve notes are the marks on money like the serial number, U.S emblems, and the signatures. They show that the money is an American Dollar.
6 0
3 years ago
Which of the following are good choices for your appearance in an interview?
nexus9112 [7]

-dress nicely

-be prepared

-empathize

Where are your options? Anyway, I hope this helps!!! :)

4 0
4 years ago
Read 2 more answers
When economists say that the demand for labor is a derived demand, they mean that it is Group of answer choices dependent on gov
Katen [24]

Answer:

related to the demand for the product or service labor is producing.

Explanation:

Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.

In Economics, there are four (4) main factors of production and these are;

I. Land.

II. Labor (working).

III. Capital resources.

IV. Entrepreneurship.

Labor refers to the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.

Generally, when these aforementioned factors of production are combined effectively and efficiently, they can be used for the manufacturing or production of goods and services to meet the unending requirements or needs of the consumers.

Typically, when economists say that the demand for labor is a derived demand, what they do really mean is that, this demand for labor is related to the demand by the consumers for the product or service labor is producing.

8 0
3 years ago
Dominic is an architect and wants to represent a pocket door in the plan. Which symbol should he use?
ludmilkaskok [199]

Answer:

The answer is C.

4 0
3 years ago
The management of supply chain inventories focuses on: No Answer Selected
Dennis_Churaev [7]

Answer: both internal and external inventories

     

Explanation: In simple words, supply chain inventories refers to the  raw material, finished goods and work in process inventories like factors that together constitutes a supply chain.

Management of supply chain refers tot he process in which the organisation tries to control and maintain the flow of inventories from on stage to the other with the ultimate objective of keeping the supply of finished goods smooth throughout the period.

It starts from procuring the suitable raw materials in right quantity and right time after that it monitors the manufacturing unit so that production is done in appropriate time period and finally makes sure that finished goods will be supplied to the market as per the time period specified by the wholesalers or retailers.

7 0
3 years ago
Other questions:
  • As you read this scenario, think about the effects of reducing trade regulations.
    6·2 answers
  • Which definition is the correct definition of "risk-based financing"?
    5·1 answer
  • (a) On March 2, Shamrock Company sold $897,900 of merchandise to Pharoah Company on account, terms 2/10, n/30. The cost of the m
    7·1 answer
  • Midwest Agri-Products Corporation offers to sell its sugar substitute to Nice Candies, Inc., only if Nice Candies agrees to buy
    5·1 answer
  • June
    9·1 answer
  • Kodak resisted making changes as the photography environment was moving from chemical to digital processes. Its ___ prevented th
    9·1 answer
  • The Forestville Freeze is regionally known for its employee training programs. Managers at the Freeze conduct research to determ
    6·1 answer
  • Which one of the following is a formal document to manage and control project execution?
    11·1 answer
  • Diaz and Associates incurred the following costs in completing a tax return for a large company. Diaz applies overhead at 50% of
    6·1 answer
  • The process through which a product or service takes root initially in simple applications at the bottom of a market and then mo
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!