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ABC Company manufactures kitchen products. ABC Company purchases 17,600 plastics sheets at a cost of $95 per plastic sheet each year. Relevant costs per purchase
ABC Company manufactures kitchen products. ABC Company purchases 17,600 plastics sheets at a cost of $95 per plastic sheet each year. Relevant costs per purchase order are $168. Relevant carrying costs for insurance, material- handling, freight are $4.25 per plastic sheet per year. ABC Company requires a 15% annual rate of return on investment. Required: 1. Calculate ABC Company EOQ for the plastic sheets. (3 M) 2. Assume that demand is uniform through the year and known with certainty. Purchasing time is 2 weeks. Calculate ABC Company reorder point for the plastic sheets. (2 M) 3. Calculate ABC Company total ordering and carrying costs using EOQ. (4 M) Please show all your computations to support your
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