Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fullerton IV Company has had a policy of reordering inventory every 30 days. Using the data below, what is the economic order quantity EOQ? Ordering

Fullerton IV Company has had a policy of reordering inventory every 30 days. Using the data below, what is the economic order quantity EOQ?

Ordering cost F $10 per order

Carrying cost C 20% of purchase price

Purchase price P $10 per unit

Total sales per year S 1,000 units

Safety stock 0

Days per year 360

What is the average daily usage rate? Assume 360 days per year. Round your answer to two decimal places.

If it takes 9 days between when the order is placed and when it is received, what is the reorder point? in units.

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

Students also viewed these Finance questions

Question

What is conservative approach ?

Answered: 1 week ago

Question

What are the basic financial decisions ?

Answered: 1 week ago