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VARVARA [1.3K]
3 years ago
14

g An automobile dealer expects to sell 529 cars a year. The cars cost $11,000 plus a fixed charge of $500 per delivery. If it co

sts $1000 to store a car for a year, find the order size and the number of orders that minimize inventory costs.
Business
1 answer:
harkovskaia [24]3 years ago
4 0

Answer:

Order size = 23 cars

The number of orders = 23

Explanation:

The economic order quantity (EOQ) is the order size that reduces the balance of holding and ordering cost. It is to be noted that at EOQ, the carrying cost is equal to the holding cost.

The EOQ is computed as shown below;

= √ 2 × Co × D)/Ch

Co = Ordering cost

D = Annual demand

Ch = Carrying cost

EOQ = √ 2 × 500 × 529 / 1,000

EOQ = 23

Number of cars to be ordered per time, I.e optimal order size = 23

Order size = 23 cars

2. The number of times orders should be placed per year would be calculated as;

Number of orders = Annual demand / Order size

Number of orders = 529 / 23

Number of orders = 23

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3 years ago
Problem 5-35 Comparing Cash Flow Streams [LO 1] You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They
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Answer:

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Explanation:

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3 years ago
When putting away pallets of freight into multiple depth drive-in bays, what level of racking should be stocked first, second, a
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Answer:

$4760

Explanation:

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700 x 6.80

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Party A has agreed to exchange $1 million U.S. dollars for1.21 million Canadian dollars. This agreement is called a swap.

<h3>What is swap?</h3>

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Through the use of swap, one can gain access to new financial markets for funding by analyzing the comparative advantage that the other party has in that market. As a result, exchange fully utilizes the comparative advantage that parties possess. As a result, money can be collected at a lower cost from the best source available.

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