Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A manufacturer has a production facility that requires 18,515 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from

image text in transcribed
A manufacturer has a production facility that requires 18,515 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 13 days. The unit purchase cost is $22.4 - per unit. The cost to place and process an order from the supplier is $137 per order. The unit inventory carrying cost per year is 12.1 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. If the manufacturer uses a constant order quantity of 2,716 units per order, what is the annual inventory cost? Use at least 4 decimal places. A manufacturer has a production facility that requires 18,515 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 13 days. The unit purchase cost is $22.4 - per unit. The cost to place and process an order from the supplier is $137 per order. The unit inventory carrying cost per year is 12.1 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. If the manufacturer uses a constant order quantity of 2,716 units per order, what is the annual inventory cost? Use at least 4 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Governmental Accounting Auditing And Financial Reporting

Authors: Michele Mark Levine, Todd Buikema

10th Edition

0891250107, 978-0891250104

More Books

Students also viewed these Accounting questions

Question

Time required (hours or days) to make the change, tchange.

Answered: 1 week ago

Question

Understand the use of different performance-rating techniques

Answered: 1 week ago