Question

Cheesburger and Taco Company purchases 13,510 boxes of cheese
each year. It costs $24 to place and ship each order and $5.89 per
year for each box held as inventory. The company is using Economic
Order Quantity model in placing the orders.

How many orders will be placed each year? Round the answer to
the whole number

Answer #1

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Cheeseburger and Taco Company purchases 18,202 boxes of cheese
each year. It costs $23 to place and ship each order and $4.00 per
year for each box held as inventory. The company is using Economic
Order Quantity model in placing the orders.
Calculate Economic Order Quantity

Cheeseburger and Taco Company purchases 10,570 boxes of cheese
each year. It costs $20 to place and ship each order and $8.89 per
year for each box held as inventory. The company is using Economic
Order Quantity model in placing the orders.
What is the annual ordering cost of cheese inventory.
Round the answer to two decimals.

Mama Leone's Frozen Pizzas uses 59,000 pounds of cheese per
year. Each pound costs $5.50. The ordering cost for the cheese is
$657.90 per order, and its carrying cost is $1.29 per pound per
year. Calculate the firm's economic order quantity (EOQ) for the
cheese. Mama Leone's operates 260 days per year and maintains a
minimum inventory level of 55 days' worth of cheese. Assuming that
the lead time to receive orders of cheese is 33 days, calculate the
reorder...

Mama Leone's Frozen Pizzas uses 41,000 pounds of cheese per
year. Each pound costs $5.50. The ordering cost for the cheese is
$1357.30 per order, and its carrying cost is $2.77 per pound per
year. Calculate the firm's economic order quantity (EOQ) for the
cheese. Mama Leone's operates 220 days per year and maintains a
minimum inventory level of 4 days' worth of cheese. Assuming that
the lead time to receive orders of cheese is 3 days, calculate the
reorder...

Appliance for Less is a local appliance store. It costs this
store $23.68 per unit annually for storage, insurance, etc., to
hold microwave in their inventory. Sales this year are anticipated
to be 664 units. Each order costs $91. The company is using
Economic Order Quantity model in placing the orders.
What is the average inventory held during the year including
safety stock if the store insists on a 2 days safety stock (assume
365 days a year)?
(Round the...

Appliance for Less is a local appliance store. It costs this
store $21.75 per unit annually for storage, insurance, etc., to
hold microwave in their inventory. Sales this year are anticipated
to be 660 units. Each order costs $60. The company is using
Economic Order Quantity model in placing the orders.
What is the average inventory held during the year including
safety stock if the store insists on a 2 days safety stock (assume
365 days a year)?
(Round the...

Suppose Stanley's Office Supply purchases 50,000 boxes of pens
every year. Ordering costs are $100 per order, carrying costs are
5% of the inventory value, and the price is of $2.00 per box. The
vendor now offers a quantity discount of 1% per box if the company
buys pens in order sizes of 20,000 boxes. Should the company accept
the quantity discount? Show your calculations to justify your
decision.

10. Suppose Stanley's Office Supply purchases 50,000 boxes of
pens every year. Ordering costs are $100 per order, carrying costs
are 5% of the inventory value, and the price is of $2.00 per box.
The vendor now offers a quantity discount of 1% per box if the
company buys pens in order sizes of 20,000 boxes. Should the
company accept the quantity discount? Show your calculations to
justify your decision.

Appliance for Less is a local appliance store. It costs this
store $17.33 per unit annually for storage, insurance, etc., to
hold microwave in their inventory. Sales this year are anticipated
to be 777 units. Each order costs $72. The company is using
Economic Order Quantity model in placing the orders. It takes
approximately 2 days to receive an order after it has been placed.
If the store insists on a 6 day safety stock (assume 365-days a
year), what...

A mail-order house uses 15,750 boxes a year. Carrying costs are
45 cents per box a year, and ordering costs are $92. The following
price schedule applies.
Number of Boxes
Price per Box
1,000 to 1,999
$1.40
2,000 to
4,999
1.30
5,000 to
9,999
1.20
10,000 or
more
1.15
Determine the optimal order quantity. (Round your answer
to the nearest whole number.)
Optimal order quantity
boxes
b. Determine the number of orders per year.
(Round your answer to...

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