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Green Tech Company, Iwhich produces lawn mowers, purchases 22,055 units at a rotor blade part each year at a cast of 565 per unit. Green
Green Tech Company, Iwhich produces lawn mowers, purchases 22,055 units at a rotor blade part each year at a cast of 565 per unit. Green Tech requires a 20% annual rate at retum an investment. in addition, the relevant carrying cast {fer insurance, materials handling. breakage and st: an} is 55 per unit per year. The relevant urdering cost per purchase qrder is 5155. Requirements 1. Calculate Green Tech's @ fer the rater blade pa rt. 2. Calculate Green Tech's annual relevant urden'ng casts fer the @ calculated in requirement 1. 3. Calculate Green Tech's annual relevant carrying casts fer the m calculated in requirement 1. 4. Assume that demand is unifqnn thrpughnut the year and knnwn with certainty an that there is nu need for safety stacks. The purchase-qrder lead time is half a mnnth. Calculate Green Tech's reqrder paint for the ruler blade part. Requirement 1. Calculate Green Tech's EOQ for the rotor blade part. Begin by selecting the formula used to calculate EOQ. (D = Demand in units for one year, P = Ordering cost per purchase order, C = Carrying cost of one unit in stock, Q = Any order quantity) (Round the denominator to the nearest cent.) The EQQ for the rotor blade part is units.Requirement 2. Calculate Green Tech's annual relevant ordering costs for the EGG calculated in requirement 1. Begin by selecting the formula used to calculate Green Tech's annual relevant ordering costs. (D = Demand in units for one year. F' = Grdering cost per purchase order, C = Carrying cost of one unit in stock, G = Any order quantity} The annual relevant ordering costs for the EDD calculated in requirement 1 is 5D. Requirement 3. Calculate Green Tech's annual relevant carrying costs forthe EGQ ca iculated in requirement 1. Green Tech's annual relevant carrying costs for the EOCI calculated in requirement 1 is 5'1. Requirement 4. Assume that demand is unilonn throughout the year and known with certainty so that there is no need for safety stocks. The purchaseorder lead time is half a month. Calculate Green Tech's reorder point for the rotor blade oart. Green Tech's reorder point for the rotor blade part is D
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