Question
The minor setup costs, daily demand, and purchasing costs for the products jointly purchased by FCC Company are given below. The major setup cost
The minor setup costs, daily demand, and purchasing costs for the products jointly purchased by FCC Company are given below. The major setup cost is 120 TL per order, inventory carrying charges are 10% of the unit cost of products, and the number of operating days per year is 250. Product 1 2 3 4 Minor Setup Cost (TL/ order) 20 10 5 5 Daily Demand (in units) 1 24 2 2 Purchasing Cost (TL/ unit) 2 5 2 1 Assume that all products have varying order cycles. Determine the cycle times and order quantities for all products, and the associated total cost.
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
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