Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Global Manufacturing, Inc. currently begins each sales cycle with 168,758 units in stock. This stock is depleted at the end of each sales cycle and
Global Manufacturing, Inc. currently begins each sales cycle with 168,758 units in stock. This stock is depleted at the end of each sales cycle and then reordered. The firm currently places 4 orders per year The carrying cost per unit is $0.611 per year and the fixed order cost is $8,245 per order. Assuming there is no shortage cost for this firm. The average cost of each unit of inventory is $92.58. | ||||||||
DATA INPUT | ||||||||
Beginning inventory = | 168,758 | units | ||||||
Ending inventory = | 0 | units | ||||||
# Orders per year = | 4 | orders | ||||||
Carrying cost / unit = | $0.611 | per year | ||||||
Fixed order cost = | $8,245 | per order | ||||||
Average Inventory cost per unit = | $92.58 | per unit | ||||||
| ||||||||
(a) What is the total carrying cost? (Round to the nearest whole dollar. (e.g., 1,234)) | $ | |||||||
(b) What is the restocking cost? (Round to the nearest whole dollar. (e.g., 1,234)) | $ | |||||||
(c) What is the total cost of current inventory policy? (Round to the nearest whole dollar. (e.g., 1,234)) | $ | |||||||
(d) Calculate the economic order quantity. (Round your answer to the nearest whole number of units. (e.g., 1,234)) | 0 | |||||||
(e) Calculate the number of orders per year that would be required if the EOQ Inventory Policy were implemented. (Round your answer to 2 decimal places. (e.g., 32.16)) | ||||||||
(f) What would the EOQ Inventory Balance (in dollars) be in 2019 if the firm switched to the EOQ Inventory Policy? (Do not include the dollar sign ($). Round to the nearest whole dollar. (e.g., 1,234) | $ |
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