Question
1.Demand for a popular athletic shoe is nearly constant at 600 pairs per week for a regional division of a national retailer. The cost per
1.Demand for a popular athletic shoe is nearly constant at 600 pairs per week for a regional division of a national retailer. The cost per pair is $50. It costs $68 to place an order, and annual holding costs are charged at 20% of the cost per unit. The lead time is two weeks.
a.What is the EOQ?
b.What is the reorder point?
c.What is the cycle time?
d.What is the total annual cost?
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Accounting for Governmental and Nonprofit Entities
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
18th edition
1260190080, 1260190083, 978-1259917059
