Question
23:07 15 Aralk Per @%9 < > AA web.whatsapp.com Sepetim - Vakko 8f29fd70-5c92-4b33-9e5c-125aa12eb96e 785x361 pik... Exercise II. Forecasted sales level 10 thousand units Average
23:07 15 Aralk Per @%9 < > AA web.whatsapp.com Sepetim - Vakko 8f29fd70-5c92-4b33-9e5c-125aa12eb96e 785x361 pik... Exercise II. Forecasted sales level 10 thousand units Average order costs per unit - USD 1200 per order Average order value - 1 500 units Warehouse costs per unit - USD 12; Purchase price USD 720; Average money market interest rate 5%; (Lead time) Time of one order from producer-10 days; Safety stock being maintained for 4 business activity days. 1. Calculate total inventory costs; 2. Calculate total inventory cost using Economic Order Quantity and thus calculate: Number of orders Time of inventory equilibrium (frequency of deliveries) 3. Calculate alarm stock; 4. Calculate total inventory costs when the firm can use purchase discount in the amount of USD 700 with purchases over 3 000 units. Decide also to accept or reject the offer for purchase discount from your supplier.
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