Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

all 3 pls Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random bas/s,

all 3 pls image text in transcribed
image text in transcribed
Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random bas/s, uses about 1,600 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $8 per unit of average inventory, Every time an order is placed for more of item X, it costs $16. a. Whenever item X is ordered, what should the order size be? Note: Round your answer to the nearest whole number. b. What is the annual cost for ordering item X ? Note: Round your order quantity to the nearest whole number and your final answer to 2 decimal places. c. What is the annual cost for storing item X? Note: Round your order quantity to the nearest whole number and your final answer to 2 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

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti

8th Edition

0814406807, 978-0814406809

More Books

Students also viewed these Finance questions

Question

Describe ERP and how it can create efficiency within a business

Answered: 1 week ago