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
Andreas93 [3]
3 years ago
14

ABC Hardware store is open for business 350 days a year. Annual demand for a power cutter at this store is 700 units. Replenishm

ent cost is $15 per order, and annual inventory holding cost is 10% of the inventory value. ABC pays $20 for each power cutter. What is the economic order quantity for this cutter, and what is the reorder point if the lead time is 5 days and ABC policy is to keep a safety stock of 10 units?
Business
1 answer:
BlackZzzverrR [31]3 years ago
7 0

Answer:

102.47 and 20

Explanation:

What is economic order quantity?

EOQ or the economic order quantity is the level of inventory which is the most optimal level for reducing inventory costs. It assumes that the supplier will supply as and when required and follows a just in time policy.

Now that we are familiar with the concept, let's recall the formula:

EOQ= SQRT( 2* D *k /h)

D - Annual demand, which is 700

k - Replenishment cost, which is $15

h - holding cost, which is 10% of inventory value = 0.1 × $20 = $2

So, EOQ = SQRT(2 * 700 * 15/2) = 102.47 units

Reorder point  = daily demand * lead time + safety stock = 700/365*5+10=20 Units

You might be interested in
Robinson Crusoe has formed a business that sells carved gourmet coconuts. He has hired five employees. The most senior is Friday
shusha [124]
The answer is B) Operations
4 0
3 years ago
Susan is working with the management team in her company to classify data in an attempt to apply extra security controls that wi
Olegator [25]

Answer:

C. Confidentiality

Explanation:

Confidentiality involves actions taken to protect the clients or someone information from the public, this could be private informations, and it is in accordance to law of the land.

Therefore, from this question the principle of information security is Susan trying to enforce is Confidentiality.

7 0
3 years ago
After you send in your FAFSA form, what will you receive back
goldenfox [79]
<span>After you submit the Free Application for Federal Student Aid (FAFSA), you will be sent a Student Aid Report (SAR). If they have a valid e-mail address on file for you, they will send you an e-mail, within 3 to 5 days, with instructions on how to access an online copy of your SAR.</span>
8 0
3 years ago
How do I surprise my mom with a special guest and get her to make extra dinner for them so that they can eat with us to without
umka21 [38]

Answer:

tell her to make extra!

Explanation:

you can use excuses such as wanting to pack leftovers for a meal the next day, or saying you're extra hungry

6 0
3 years ago
The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the fo
Pani-rosa [81]

Answer:

Mr. J = $27,000

Mr. K = $24,000

Mr. L = $39,000

Explanation:

Partnership for the year 2018 = $90,000

Profit/(Loss) to be distributed:

= Partnership for the year 2018 - Bonus to Mr. J - Interest on average capital investment

= $90,000 - [20% × $90,000] - {(15% × $100,000) + (15% × $200,000) + (15% × $300,000)}

= $90,000 - $18,000 - [$15,000 + $30,000 + $45,000]

= ($18,000) ⇒ Loss

Loss to be allocated to each partner = ($18,000) ÷ 3

                                                             = ($6,000)

Therefore, the profit of $90,000 should be assigned to each partner is as follows:

Mr. J = $18,000 + $15,000 + ($6,000)

        = $27,000

Mr. K = $30,000 + ($6,000)

         = $24,000

Mr. L = $45,000 + ($6,000)

        = $39,000

7 0
3 years ago
Other questions:
  • If, at constant relative prices in a two-commodity and two-factor world, growth in a country’s labor force causes an expansion i
    12·2 answers
  • When average total cost is at its minimum
    10·1 answer
  • Sam has contracted with dave to purchase dave's racing bike, with payment and delivery of the bicycle to be in 10 days. three da
    9·1 answer
  • Suppose the economy is on the classical range of the aggregate supply curve and has a problem with inflation. According to Keyne
    13·1 answer
  • Do consumers benefit in any way from monopolistic competition relative to perfect​ competition? compared to perfect​ competition
    14·1 answer
  • When a liability is first recorded, it is _____. reported as a current liability. reported as a long-term liability. measured in
    7·1 answer
  • A job search should be treated like a full time job.
    15·1 answer
  • A cable TV company redesigned jobs so that one employee interacts directly with customers, connects and disconnects their cable
    7·1 answer
  • Walmart is the biggest seller of raw chicken to the top 10 fast food chains in the United States. Walmart
    11·2 answers
  • Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2022. (Credit account t
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!