Question
Downey Disks is experiencing some inventory control problems. The manager currently order each year with the annual purchase of the inventory costing $200,00 each inventory
Downey Disks is experiencing some inventory control problems. The manager currently order each year with the annual purchase of the inventory costing $200,00 each inventory items cost $8ordering costs are $125 and each items costs $2.50 to carry.What is the total cost of the present ordering system as compared to EOQ ordering system?
Baktoo Basics Ltd. Is considering introducing an inventory control system that will increase inventory turnover from 10 to 15 times per year. Its annual cost of goods sold is expected to be $6 millon, and its financing costs are 11 percent. Should Baktoo Basics consider an expenditure of $17,500 on the new control system? Show all alculation
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