Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. PT NTC starts every week with a stock of 250 products. This stock will run out every week and will be reordered. If carrying

image text in transcribed a. PT NTC starts every week with a stock of 250 products. This stock will run out every week and will be reordered. If carrying costs per product are $75 per year and fixed ordering costs are $200 : - What is the total transportation cost? (2%) - How much is the re-storage fee? (2%) - Should PT NTC increase or decrease the size of its order? (2\%) - Explain the optimal inventory policy for PT NTC in terms of order size and order frequency! (2%) b. PT NTC also has a new policy for the company. The following is company information reqarding old and new policies: Calculate the NPV of the policy change withreturn rate 1.5%. (7%)

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

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Finance questions