Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hampers n Co is a manufacturing company that produces plastic bottles.The company uses the Economic Order Quantity method for plastic raw materials.Currently the company requires

Hampers n Co is a manufacturing company that produces plastic bottles. The company uses the Economic Order Quantity method for plastic raw materials. Currently the company requires and orders 6,000 square meters per quarter. Other data related to wool fabric raw materials are as follows.

The ordering fee is Rp. 640,000 per year. Orders are made 4 times a year.

Carrying costs are 10% of the average investment in inventory.

The purchase price for wool fabric from the supplier is IDR 30,000 per meter.

Lead time is 3 business days.

The highest monthly usage in 2023 is 20% of normal monthly usage (1 month 20 working days)

Requested:

Calculate EOQ.

Calculate the total ordering costs and total holding costs per year.

Calculate the order frequency in 2020.

Calculate the amount of safety stock.

Calculate the Reorder Point.

Step by Step Solution

3.52 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

Hampers n Co Plastic Bottles Calculations 1 Economic Order Quantity EOQ Annual demand D 6000 square ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Operations Management Processes And Supply Chains

Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman

13th Global Edition

129240986X, 978-1292409863

More Books

Students also viewed these Accounting questions

Question

Describe the accounting for held-to-maturity debt securities

Answered: 1 week ago