I only need assistance with the last question (#20 in first picture). Im not sure what type of calculation Im supposed to do to solve for the new price at 325k budget (shown in second picture).
8 Find the reorder point in units 9 Find the number of orders to be placed in a year 10 Find the number of days between orders 11 What is the carrying cost 12 What is the holding cost 13 Find the opportunity cost 14 Find the volume of the average inventory 15 Find the cost of the average inventory 16-19 Our vendor offers a discount (L11) on price if allowed to make equal monthly deliveries. Should we accept the offer? 20 Bronco Nursing Home has budgeted $325,000 for this product. What is the new price that must be negotiated to make budget? Type here to search $ $ Price Annual Demand Order Cost (per order) Interest Holding Cost (per unit) Lag Time (days) 15.50 21,000 190.00 3.5% 0.075 $ .50% 00 1.16 1,750 26,859.35 18 . Yes 8 EOQ 3394.62 Discount US7 Total Cost $ 327,850.78 Price Reorder Point 287.67 Quantity Orders per Year 44.59 Total Cost $ Days Between Orders 8.191 Verne Yes / No Carrying Cost $ 1,175.39 New Price @ Holding Cost $ 254.60 $325K budget Opportunity Cost $ 920.79 14 Average Inventory Volume 1697.31 15 Average Inventory Cost $ 26,308.33 mnrimar and munntirinn listad aaloulain tha itame halal A A4 80 8:43 PM 019 mory E F G H Bronco Skilled Nursing Home Inventory Valuation Purchases of Medium Adult Units Diapers (Cases) January 1, 2018 1.245 S 15.45 Total Bronco Skilled Nursing Home - Economic Order Quantity Medium Adult Diapers 15.50 Annual Demand 21,000 Order Cost (per order) S 190.00 19235.25 February 1, 2019 1.380 S 15.20 20976 March 1, 2019 1.116 S 14 35 16014.6 April 1, 2019 10920 Interest 35% May 1, 2019 24961.75 $ 0075 780 S 1,595 $ 2.263 $ 2.115 $ 14.00 15.65 17.00 17.60 June 1, 2019 Holding Cost (per unit) Lag Time (days) 2,334 S 18.90 44112.6 1394 62 Discount 7.50% 1,278 $ 13,80 17636.4 Price July 1, 2019 August 1, 2019 September 1, 2019 October 1, 2019 November 1, 2019 December 1, 2019 1.16 16 $ 327,850.78 27,67 1.115 S 12.60 140,49 3,268 $ 15.65 511442 Quantity Total Cost Yes/No 5 EOG Total Cost Reorder Point Orders per Year Days Between Orders Carrying Cost Holding Cost Opportunity Cost 26.859.35 13 4,698 $ 15 33 72020234 Totals 21.187 366765.14 S 1.125 39 Ending Inventory on Dec. 31 5.950 New Price $325K budget 254.80 920.79 December 1, 2019 4,698 23,187 Totals Ending Inventory on Dec. 31 5,950 Ending Inventory Cost - LIFO 5,950 Ending Inventory Cost - FIFO 5,950 iding Inventory Cost - Weighted Average 94115.3484 on the CALC modelacrumntionc from the Materiale MARDAN search 8 Find the reorder point in units 9 Find the number of orders to be placed in a year 10 Find the number of days between orders 11 What is the carrying cost 12 What is the holding cost 13 Find the opportunity cost 14 Find the volume of the average inventory 15 Find the cost of the average inventory 16-19 Our vendor offers a discount (L11) on price if allowed to make equal monthly deliveries. Should we accept the offer? 20 Bronco Nursing Home has budgeted $325,000 for this product. What is the new price that must be negotiated to make budget? Type here to search $ $ Price Annual Demand Order Cost (per order) Interest Holding Cost (per unit) Lag Time (days) 15.50 21,000 190.00 3.5% 0.075 $ .50% 00 1.16 1,750 26,859.35 18 . Yes 8 EOQ 3394.62 Discount US7 Total Cost $ 327,850.78 Price Reorder Point 287.67 Quantity Orders per Year 44.59 Total Cost $ Days Between Orders 8.191 Verne Yes / No Carrying Cost $ 1,175.39 New Price @ Holding Cost $ 254.60 $325K budget Opportunity Cost $ 920.79 14 Average Inventory Volume 1697.31 15 Average Inventory Cost $ 26,308.33 mnrimar and munntirinn listad aaloulain tha itame halal A A4 80 8:43 PM 019 mory E F G H Bronco Skilled Nursing Home Inventory Valuation Purchases of Medium Adult Units Diapers (Cases) January 1, 2018 1.245 S 15.45 Total Bronco Skilled Nursing Home - Economic Order Quantity Medium Adult Diapers 15.50 Annual Demand 21,000 Order Cost (per order) S 190.00 19235.25 February 1, 2019 1.380 S 15.20 20976 March 1, 2019 1.116 S 14 35 16014.6 April 1, 2019 10920 Interest 35% May 1, 2019 24961.75 $ 0075 780 S 1,595 $ 2.263 $ 2.115 $ 14.00 15.65 17.00 17.60 June 1, 2019 Holding Cost (per unit) Lag Time (days) 2,334 S 18.90 44112.6 1394 62 Discount 7.50% 1,278 $ 13,80 17636.4 Price July 1, 2019 August 1, 2019 September 1, 2019 October 1, 2019 November 1, 2019 December 1, 2019 1.16 16 $ 327,850.78 27,67 1.115 S 12.60 140,49 3,268 $ 15.65 511442 Quantity Total Cost Yes/No 5 EOG Total Cost Reorder Point Orders per Year Days Between Orders Carrying Cost Holding Cost Opportunity Cost 26.859.35 13 4,698 $ 15 33 72020234 Totals 21.187 366765.14 S 1.125 39 Ending Inventory on Dec. 31 5.950 New Price $325K budget 254.80 920.79 December 1, 2019 4,698 23,187 Totals Ending Inventory on Dec. 31 5,950 Ending Inventory Cost - LIFO 5,950 Ending Inventory Cost - FIFO 5,950 iding Inventory Cost - Weighted Average 94115.3484 on the CALC modelacrumntionc from the Materiale MARDAN search
