Question

The Queens Box Company experiences a constant demand of 48,000 boxes per year to operate its...

The Queens Box Company experiences a constant demand of 48,000 boxes per year to operate its business. The unit cost is .30 (cents). Placing an order costs $20 and annual carrying costs are $2/unit. The company operates 250 days per year and maintains a safety stock of 576 boxes. The lead time for an order of boxes is 4 business days. The EOQ (rounded to the nearest whole number) is:

a.

576 units

C.

3098 units

b.

490 units

d.

980 units

                  Refer to the previous question The reorder point, R, is:

a.

1,344 units

c.

576 units

b.

   768 units

d.

Cannot be determined from this information
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Alexis Company uses 800 units of a product per year on a continuous basis. The product...
Alexis Company uses 800 units of a product per year on a continuous basis. The product has a fixed cost of $50 per order, and its carrying cost is $2 per unit per year. It takes 5 days to receive a shipment after an order is placed. And the firm wishes to hold 10 days usage in inventory as a safety stock Calculate the EOQ Determine the average level of inventory. (Note: Use a 365 day year to calculate daily...
A company experiences annual demand of 2,430 units for an item that it purchases. The rate...
A company experiences annual demand of 2,430 units for an item that it purchases. The rate of demand per day is very stable, with very little variation from day to day. The item costs $40 when purchased in quantities less than 150 and $38 for 150 or more. Ordering costs are $30 and the carrying cost is 20 percent. a. What will be the total costs for each alternative? (Round your intermediate calculations and final answers to the nearest dollar...
URGENT A, If EOQ of a company is 1,000 units, holding cost per unit per year...
URGENT A, If EOQ of a company is 1,000 units, holding cost per unit per year is Rs.10. What is total ordering cost?            [2 Marks] B, COMPANY annually consumes 10,000 units of component P. The carrying cost of this component is Rs.2 per unit per year and the ordering costs are Rs.100 per order. PoMA uses an order quantity of 500 units. The company operates 200 days per year, and the lead time for ordering component P is 14 days....
Ace Manufacturing produces commercial lawnmowers units in batches. the company estimates the demand for the year...
Ace Manufacturing produces commercial lawnmowers units in batches. the company estimates the demand for the year is 10,000 units. It costs about $80 to set up the manufacturing process, and the carrying cost is about 70 cents per unit per year. When the production process has been set up, 120 lawnmowers units can be made daily. The demand during the production period is approximately 60 units per day. The company operates its production area 167 days per year and includes...
Inventory Management 1. Ayo is the Purchasing Officer for a company that assembles desktop computers. The...
Inventory Management 1. Ayo is the Purchasing Officer for a company that assembles desktop computers. The computers come with 4 to 6 USB ports. The annual demand for the computers is 600 units. The cost of each computer is $1700, and the inventory carrying cost is estimated to be 10% of the cost of each computer. Ayo has made a study of the costs involved in placing an order and has concluded that the average ordering cost is $50.00 per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT