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Arvyu IJU.UUU ULS I UVIJuay prouunin per equal quantity (O). Inventory is used at a constant daily rate. Ordering and Holding Costs are accounted for
Arvyu IJU.UUU ULS I UVIJuay prouunin per equal quantity (O). Inventory is used at a constant daily rate. Ordering and Holding Costs are accounted for at end of the production period. Ordering Costs (OC) are $2,400/order and Holding Costs (HC) are $1.20/unit based onyaverage inventory. The price per unit of inventory is $23 (C). The firm pays for the inventory 60 days after delivery. The firm's cost of capital is 10% (1). For the inventory system, the PRESENT VALUE of the second order is: Total Cost - Ordering Costs + Holding Costs + Item Cost Total Cost = OCX (DIO)] + [HC (0/2)] + (C" x D) CF PV = 365 PV PVF Delivered At Cost Payment Due Att Order Quantity Order Number 60 0.983827 0 75,000 1 $4,611 2 $4,800 150 0.960526 ORDERING COSTS HOLDING COSTS $1,697,102 $1,663,474 $1,725,000 $3,450,000 Arvyu IJU.UUU ULS I UVIJuay prouunin per equal quantity (O). Inventory is used at a constant daily rate. Ordering and Holding Costs are accounted for at end of the production period. Ordering Costs (OC) are $2,400/order and Holding Costs (HC) are $1.20/unit based onyaverage inventory. The price per unit of inventory is $23 (C). The firm pays for the inventory 60 days after delivery. The firm's cost of capital is 10% (1). For the inventory system, the PRESENT VALUE of the second order is: Total Cost - Ordering Costs + Holding Costs + Item Cost Total Cost = OCX (DIO)] + [HC (0/2)] + (C" x D) CF PV = 365 PV PVF Delivered At Cost Payment Due Att Order Quantity Order Number 60 0.983827 0 75,000 1 $4,611 2 $4,800 150 0.960526 ORDERING COSTS HOLDING COSTS $1,697,102 $1,663,474 $1,725,000 $3,450,000
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