Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help me please. Jones Company found that an EOQ for a particular item was 1,000 units after calculation using the EOQ formula. However, Jones does

image text in transcribed

help me please.

Jones Company found that an EOQ for a particular item was 1,000 units after calculation using the EOQ formula. However, Jones does not have enough capital (money) to order that many units each time and thus only orders 250 units at a time. This will result in O a. Higher annual inventory carrying cost than ordering the EOQ quantity. b. Lower annual inventory carrying cost than ordering the EOQ quantity. O c. Lower annual ordering cost than ordering the EOQ quantity. O d. None of the above. D Question 24 1 pts Steve's shop sells seashells by the seashore. Steve buys shells from local collectors for an average price of $0.50 per shell (Hint: unit price is $0.50). Steve sells on average 1,000 shells each month (Hint: monthly demand is 1,000 shells). Each time he orders shells from collectors; there is a $20 shipping and handling fee. Steve estimates a unit holding (carrying) cost of $0.50 per shell per year (many of them get broken if held in inventory too long). How often should Steve order seashells? (Hint: Once you calculate the order frequency, you can answer this question easily.) O Approximately once a week O Approximately once a month O Approximately every other month (by-monthly) O Cannot determine from the above information

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

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

Banking And Finance Managing The Moral Dimension

Authors: James Lynch

1st Edition

1855731762, 978-1855731769

More Books

Students also viewed these Finance questions

Question

EXPLAIN ALGORITHM?

Answered: 1 week ago

Question

4. Devise an interview strategy from the interviewers point of view

Answered: 1 week ago