Question
) A company has the following data: Annual demand = 2,500 units Ordering cost = $15 per order Average carrying cost per unit per year
) A company has the following data:
Annual demand = 2,500 units
Ordering cost = $15 per order
Average carrying cost per unit per year = $0.75
Daily demand = 65 units
Delivery in 5 working days
Setup cost = $100
Carrying cost = $0.50 per unit per year
Daily production rate = 100 units daily
Daily demand rate = 75 units daily
Find
- optimal order quantity EOQ to reduce inventory costs
- total cost
- Number of orders per year
- Average inventory
- The average dollar level of inventory
- EOQ if we increase Co to $40
- Reorder point (ROP)
- How many units should Brown produce in each batch?
- How long should the production part of the cycle last?
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
