Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Evans Company has the following information Annual Demand.........4,000 units order size...................1,000 units ordering cost per order.......$500 carrying costs per unit for one year.......$50 lead time

Evans Company has the following information Annual Demand.........4,000 units order size...................1,000 units ordering cost per order.......$500 carrying costs per unit for one year.......$50 lead time (maximum 20 days)................10 days Maximum daily use................................25 units work year...............................................250 days 1.)determine the economic order quantity for Evans 2.)what is the annual saving to evans company if it was to change from an order size of 1,000 3.)what is the reorder point 4.) what is the safety stock needed to prevent stockouts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions

Question

Verify the formula given for the Pi of the M/M/k.

Answered: 1 week ago