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can you provide a solution and explanation in every question? thank you. this topic is all about Inventory Management 2. Problems: Economic order
can you provide a solution and explanation in every question? thank you.
this topic is all about Inventory Management
\\ 2. \\ Problems: Economic order quantity. M Corporation has been buying product A in lots of 1,250 units which represents a three month's supply. The cost per unit is 220. The order cost is P900 per order; and the annual inventory carrying cost per one unit is P25. Assume that the units will be required evenly throughout the year. Determine the following: a. Economic Order Quantity b. Number of orders in a year 0. Average inventory based on economic order quantity d. Total carrying cost, ordering costs, and relevant inventory costs at economic order quantity e. Total relevant inventory costs for order sizes of 2,000 units,1,000 units, 600 units, 250 units and100 units. Reorder point, lead time quantity, safety stock quantity. F Corporation makes available the following information relative to its Materials G-224: Annual demand 30,000 units Maximum lead time 19 days Working days in a year 300 days Maximum usage per Normal lead time 12 days working day 125 units Economic order size 6.000 units Calculate the following: a. Lead time quantity d. Average inventory b. Safety stock quantity e. Maximum inventory c. Reorder pointStep by Step Solution
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