Question

XYZ is a retailer and sells 198,000 units per year. It purchases from a single supplier....

XYZ is a retailer and sells 198,000 units per year. It purchases from a single supplier. Fixed costs per order are $895 and carrying cost is $12 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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
1.XYZ is a retailer and sells 144,000 units per year. It purchases from a single supplier. Fixed...
1.XYZ is a retailer and sells 144,000 units per year. It purchases from a single supplier. Fixed costs per order are $846 and carrying cost is $8 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity 2.XYZ is a retailer and sells 144,000 units per year. It purchases from a single supplier. Fixed costs per order are $897 and carrying cost is $10 per unit per year. In economic order quantity model, what...
XYZ is a retailer and sells 162,000 units per year. It purchases from a single supplier....
XYZ is a retailer and sells 162,000 units per year. It purchases from a single supplier. Fixed costs per order are $931 and carrying cost is $14 per unit per year. In economic order quantity model, what would be the lowest total inventory cost? That is, the lowest sum of total carrying cost and total shortage cost.  
XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at...
XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $69.46 each. The investment bank charged 7% spread. At the end of the 1st day of trading, XYZ stock price closed at $71.05. Calculate the total cost of IPO. That is, what is the sum of direct and indirect cost? XYZ is a retailer and sells 183,000 units per year. It purchases from a single supplier. Fixed costs per order are $821 and carrying...
XYZ purchases 20,000 unit of a product each year in lots of 1,000 units per order....
XYZ purchases 20,000 unit of a product each year in lots of 1,000 units per order. The cost of placing an order is $20 and the cost of carrying one unit of product in inventory is $30 per year. Required: How many orders is placed per year? What is the total ordering costs per year? What is the total carrying cost of the inventory per year? What is the total cost of carrying and ordering for the year? What is...
A retailer purchases a certain type of chemical from a supplier on the following quantity discount...
A retailer purchases a certain type of chemical from a supplier on the following quantity discount schedule: • If the order amount is less than 100 kg.s, the supplier charges $30 per kg. • If the order amount is at least 100 kg.s and less than 500 kg.s, the supplier applies an incremental discount where the first 100 kg. costs $30 per kg. and the remaining amount costs $28 per kg. • If the order amount is at least 500...
Q2. A company purchases 25,000 litres of material each year from a single supplier. At the...
Q2. A company purchases 25,000 litres of material each year from a single supplier. At the moment, the company obtains the material in batch sizes of 800litres. The materials costs $16 per litre. The cost of ordering new batch is $32 and the cost of holding one litre in stock is $4 a year plus an interest cost equal to 15% of the purchase price of the material. Calculate: a. The Economic Order Quantity b. Total ordering cost c. Total...
A retailer sells iPhones. Annual demand is 4000 units, the order placement cost is $100, and...
A retailer sells iPhones. Annual demand is 4000 units, the order placement cost is $100, and the unit holding cost is $200/yr. What is the economic order quantity? What are annual holding and ordering costs?
A retailer sells a perishable commodity and each day he places an order for Q units....
A retailer sells a perishable commodity and each day he places an order for Q units. Each unit that is sold gives a profit of 60 cents and units not sold at the end of the day are discarded at a loss of 40 cents per unit. The demand, D, on any given day is uniformly distributed over [80,140]. How many units should the retailer order to maximize expected profit?
ABC Company sells 2,055 chairs a year at an average price per chair of $164. The...
ABC Company sells 2,055 chairs a year at an average price per chair of $164. The carrying cost per unit is $33.59. The company orders 500 chairs at a time and has a fixed order cost of $79 per order. The chairs are sold out before they are restocked. What is the economic order quantity?
Brown Manufacturing uses 2,400 units of a product per year on a continuous basis. The product...
Brown Manufacturing uses 2,400 units of a product per year on a continuous basis. The product carrying costs are RM60 per year and ordering costs are RM250 per order. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. Required: Calculate the economic order quantity (round up to the nearest whole unit. Calculate the total cost per year to order and carry this...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT