Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the information below, please answer the questions - You run a retail store that sells computer games (Trexiod) - You pay your supplier

image text in transcribed Based on the information below, please answer the questions - You run a retail store that sells computer games (Trexiod) - You pay your supplier $20 per copy, regardless of how many copies you buy - Each day you sell 10 copies and the store is open 300 days per year; annual expected demand is 3,000 copies - It costs $50 each time an order is placed; inventory carrying cost is 15% of the item purchase cost annually - 10 days lead time for your supplier to get the shipment to you a. What is Economic Order Quantity (EOQ) given the information? EOQ= ) copies (Round up your answer to the next whole number) b. What is reorder point (ROP)? ROP= copies (Round up your answer to the next whole number) c. What is the Total Acquisition Costs (TAC) given the EOQ calculated above (use TAC = annual ordering cost + annual carrying cost)? TAC=$ ) (Round up your answer to the next whole number)

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

Leading Strategic Change In An Era Of Healthcare Transformation

Authors: Jim Austin ,Judith Bentkover ,Laurence Chait

1st Edition

3319808826, 978-3319808826

More Books

Students also viewed these General Management questions

Question

Be able to explain the concept of constructive discharge

Answered: 1 week ago