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Marina86 [1]
3 years ago
15

A manufacturing company uses 1000 non-returnable special pins a month, which it purchases at a cost of $2 each. The manager has

assigned an annual holding cost of 20 percent of the purchase price per pin. Ordering cost is $40 per order. Currently the manager orders 500 pins at a time. How much could the firm save annually in ordering and holding costs by using the EOQ? (Round the final answer to 2 decimal places.) 309.83 619.68 676.15 728.34 None of the above
Business
1 answer:
zloy xaker [14]3 years ago
3 0

Answer:

Total amount of be saved = $180- $178.8 =$1.11

Explanation:

<em>To determine the amount of savings , we will subtract the total inventory cost under the current order size of 500 units from the total cost using the EOQ.</em>

EOQ is the oder quantity that minimizes carrying cost and ordering cost.

Total cost of the current order size of 500 unit

Currently the total cost = Annual ordering cost + Annual holding cost

 <em>Annual ordering cost= (Demand/order size) × Ordering cost per order</em>

                               =(1000/500) × $40 = $80

<em>Carrying cost = holding cost per unit per annum × order size/2</em>

                      = 20% × $2 ×  (500/2)= $100

Total cost =80+ 100 = $180

Total cost using EOQ

EOQ is calculated as follows:

EOQ = (2× Co D)/Ch)^(1/2)

Co- ordering cost Ch - holding cost, D- annual demand

EOQ = √(2× 40×1000/20%×2

EOQ = 447.21 units

Total cost of inventory

Ordering cost = (1000/447.21)×40 = 89.4427191

Holding cost =  (447.21/2) * 20% × 2=  89.4427191

Total cost =89.44 + 89.44 = 178.8

Total amount of be saved = $180- $178.8 =$1.11456

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Answer:

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Explanation:

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3 years ago
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All of the following are examples of place advertising EXCEPT _____. a. billboards and bulletins b. transit ads c. shopping cart
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<h2>Except "shopping cart ads" all the others are examples of place advertising.</h2>

Explanation:

Billboards and bulletins:

Theses are the most impact way of advertising. These are normally huge and kept in vehicular traffic to attract customers.

Transit ads:

In simple terms, transit ads are the advertisement posted or hanged on the moving vehicles ie. in the side or back of bus, van, etc to advertise and attract customer.

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Answer:

B. Accounts Payable, Receiving and Inventory Control Department

Explanation:

First, the Multiple Choices

A. Accounts Payable, Receiving, and Stores Control Departments.

B. Accounts Payable, Receiving, and Inventory Control Departments.

C. Accounts Payable, Accounts Receivable, and Receiving Departments.

D. Accounts Payable, Receiving, and Production Planning Departments.

Accounts Payable

The organisation is making a purchase, hence, there will be financial implications and payments that need to be made for the purchase. Therefore Accounts payable is involved

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The department for receiving the order from the vendor is also crucial, the responsibility of this department is to ensure that all that was ordered and paid for on the purchase order sent to the vendor were delivered. The receiving department will also ensure that there are no defects in the supplied materials.

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Accounts Receivable in option C is not involved because money is not coming in

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