Question
A local distributor for a national paint company expects to sell 10,000 cans of paint next year. Annual building lease cost $12 per can and
A local distributor for a national paint company expects to sell 10,000 cans of paint next year. Annual building lease cost $12 per can and insurance cost $3.0 per can. Cost of processing forms is $10 and clerks wages cost $50.00. The distributor operates 240 business days per year and order lead time is 3 days
- Determine the economic order quantity
- What is the average quantity (in pounds) on hand?
- How many orders per year will there be?
- What is the total ordering and holding cost for the year?
- At what point should the company reorder? PLEASE SHOW ALL STEPS IN CALCULATIONS. NO IMAGES PLEASE
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Financial Reporting And Statement Analysis A Strategic Perspective
Authors: Clyde P. Stickney, Paul Brown
4th Edition
0030238110, 978-0030238116
