Coronas Mad Machine, Inc., sells very sophisticated electrical equipment to the U.S. government. They aim at minimizing

Question:

Corona’s Mad Machine, Inc., sells very sophisticated electrical equipment to the U.S. government.

They aim at minimizing their total inventory costs by using the graphic method of determining the EOQ. The carrying cost is 15% of the average inventory value, and the ordering cost is $35 per order. The cost of each item is $81, and if management were to order 125 units at each purchase, 30 orders a year would be required to satisfy their needs. mi785 Required:

a Calculate the EOQ using the tabular method and the graphic method. Use the following order sizes for your answer: 50, 75, 100, 150, 200, 300, 500, 750.

b Calculate the EOQ in both units and dollars using the formula method.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (QA)

Answered By

Shameen Tahir

The following are details of my Areas of Effectiveness. The following are details of my Areas of Effectiveness English Language Proficiency, Organization Behavior , consumer Behavior and Marketing, Communication, Applied Statistics, Research Methods , Cognitive & Affective Processes, Cognitive & Affective Processes, Data Analysis in Research, Human Resources Management ,Research Project, Social Psychology, Personality Psychology, Introduction to Applied Areas of Psychology, Behavioral Neurosdence , Historical and Contemporary Issues in Psychology, Measurement in Psychology, experimental Psychology, Business Ethics Business Ethics An introduction to business studies Organization & Management Legal Environment of Business Information Systems in Organizations Operations Management Global Business Policies Industrial Organization Business Strategy Information Management and Technology Company Structure and Organizational Management Accounting & Auditing Financial Accounting Managerial Accounting Accounting for strategy implementation Financial accounting Introduction to bookkeeping and accounting Marketing Marketing Management Professional Development Strategies Business Communications Business planning Commerce & Technology Human resource management General Management Conflict management Leadership Organizational Leadership Supply Chain Management Law Corporate Strategy Creative Writing Analytical Reading & Writing Other Expertise Risk Management Entrepreneurship Management science Organizational behavior Project management Financial Analysis, Research & Companies Valuation And any kind of Excel Queries.

4.70+ 16+ Reviews 34+ Question Solved

Related Book For book-img-for-question