Namath Co. predicts it will use 25,000 units of material during the year. The expected daily usage
Question:
Namath Co. predicts it will use 25,000 units of material during the year. The expected daily usage is 200 units, and there is an expected lead time of five days and a desired safety stock of 500 units. The material is expected to cost $5 per unit. Namath anticipates it will cost $50 to place each order. The annual carrying cost is $0.10 per unit.
Required:
1. Compute the order point.
2. Determine the most economical order quantity by use of the formula.
3. Calculate the total cost of ordering and carrying at the EOQ point.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
1 Compute the order point Units per day 200 Days 5 S...View the full answer
Answered By
Vijesh J
My passion to become a tutor is a lifetime milestone. Being a finance and marketing professional with hands-on experience in wealth management, portfolio management, team handling and actively contributing in promoting the company. Highly talented in managing and educating students in most attractive ways were students get involved. I will always give perfection to my works. Time is the most important for the works and I provide every answer on time without a delay. I will proofread each and every work and will deliver a with more perfection.
5+ Reviews
15+ Question Solved
Related Book For 
Question Posted:
