Question

Fisk Corporation is trying to improve its inventory control system and has installed an on- line...

Fisk Corporation is trying to improve its inventory control system and has installed an on- line computer at its retail stores. Details related to Fisk's purchasing are shown below.

Monthly expected purchases (in units) 8,000

Ordering costs (per order) $ 6.25

Carrying costs (per unit) $ 1.24 REQUIRED

a) What is the economic ordering quantity?

b) How many orders will be placed during the year?

c) What will the average inventory be?

d) What is the total cost of inventory expected to be?

Business   Finance   
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
Fisk Corporation is trying to improve its inventory control system and has installed an online computer...
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 56,000 units per year, an ordering cost of $8 per order, and carrying costs of $1.40 per unit. a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be? d. What is the total cost of ordering and carrying inventory?
12 Fisk Corporation is trying to improve its inventory control system and has installed an online...
12 Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 84,500 units per year, an ordering cost of $12 per order, and carrying costs of $1.20 per unit.   a. What is the economic ordering quantity?        b. How many orders will be placed during the year?        c. What will the average inventory be?        d. What is the total cost of...
Fisk Corporation is trying to improve its inventory control system and had installed an online computer...
Fisk Corporation is trying to improve its inventory control system and had installed an online computer at its retail stores. Fisk anticipates sales of 60,500 units per year, an ordering cost of $4 per order, and carrying costs of $1.60 per unit. a. what is the economic ordering quantity? b. how many orders will be placed during the year? c. what will the average inventory be? d. what is the total cost of ordering and carrying inventory?
The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in minicomputers. The...
The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in minicomputers. The unit cost of each transistor is $10, and the cost of carrying one transistor in inventory for a year is $3. Ordering cost is $30 per order. Assume that Fisher operates on a 200-day working year. (a) What is the optimal order quantity (b) The expected number of orders placed each year (c) The expected time between orders?
Knutson Products Inc. is involved in the production of airplane parts and has the following​ inventory,...
Knutson Products Inc. is involved in the production of airplane parts and has the following​ inventory, carrying, and storage​ costs: 1. Orders must be placed in round lots of 100 units. 2. Annual unit usage is 250,000 ​(Assume a​ 50-week year in your​ calculations.) 3. The carrying cost is 15 percent of the purchase price. 4. The purchase price is ​$20 per unit. 5. The ordering cost is ​$400 per order. 6. The desired safety stock is 8,000 units.​ (This...
16) For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation...
16) For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. A new purchasing agent has been hired by the company who wants to start using the economic-order-quantity method and its supporting decision elements. She has gathered the following information: Annual demand in units 250 Days used per year 250 Lead time, in days 10 Ordering costs $100 Annual unit carrying costs $20 Required: Determine the...
Knutson Products Inc. is involved in the production of airplane parts and has the following​ inventory,...
Knutson Products Inc. is involved in the production of airplane parts and has the following​ inventory, carrying, and storage​ costs: 1. Orders must be placed in round lots of 100 units. 2. Annual unit usage is150,000. ​(Assume a​ 50-week year in your​ calculations.) 3. The carrying cost is 25 percent of the purchase price. 4. The purchase price is ​$10 per unit. 5. The ordering cost is ​$200 per order. 6. The desired safety stock is 4000 units.​ (This does...
You manage inventory for your company and use a continuous review inventory system to control reordering...
You manage inventory for your company and use a continuous review inventory system to control reordering items for stock. Your company is open for business 300 days per year. One of your most important items experiences demand of 20 units per day, normally distributed with a standard deviation of 3 units per day. You experience a lead time on orders from your supplier of six days with a standard deviation of two days. The unit price, regardless of order size,...
Economic Order Quantity Ottis, Inc., uses 731,025 plastic housing units each year in its production of...
Economic Order Quantity Ottis, Inc., uses 731,025 plastic housing units each year in its production of paper shredders. The cost of placing an order is $30. The cost of holding one unit of inventory for one year is $15. Currently, Ottis places 171 orders of 4,275 plastic housing units per year. Required: 1. Compute the economic order quantity. units 1,710 2. Compute the ordering, carrying, and total costs for the EOQ. Ordering cost $__________ Carrying cost 12,825 Total cost $__________...
Shorty Corporation uses 1,452 of Part 34B each week. For simplicity’s sake it places an order...
Shorty Corporation uses 1,452 of Part 34B each week. For simplicity’s sake it places an order for the amount every Monday so that it receives the order by the start of the following week. A recent analysis of the company’s costs has determined that the carrying costs for unit of inventory is $8.54 per item of inventory and that it costs an average of $560 to place an order. 1. What is the optimal size of an order? (i-e, What...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT