Question
Clap Off Manufacturing uses 1,600 switch assemblies per week and then reorders another 1,600. Assume the relevant carrying cost per switch assembly is $5.30 and
| Clap Off Manufacturing uses 1,600 switch assemblies per week and then reorders another 1,600. Assume the relevant carrying cost per switch assembly is $5.30 and the fixed order cost is $590. (Enter your answer as directed, but do not round intermediate calculations.) |
| Required: | |
| (a) | Calculate the carrying costs. |
| Carrying costs | $ |
| (b) | Calculate the restocking costs. |
| Restocking costs | $ |
| (c) | Calculate the economic order quantity. (Round your answer to 2 decimal places (e.g., 32.16).) |
| Economic order quantity |
| (d) | Calculate the EOQ number of orders per year. (Round your answer to 2 decimal places (e.g., 32.16).) |
| Number of orders per year |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Stocks For The Long Run
Authors: Jeremy Siegel
6th Edition
1264269803, 978-1264269808
