Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

IM . 8 2 A distributor of industrial equipment purchases specialized compressors for use in air conditioners. The regular price is ( $

IM.82 A distributor of industrial equipment purchases specialized compressors for use in air conditioners. The regular price is \(\$ 60\), however, the manufacturer of this compressor offers quantity discounts per the following discount schedule: The distributor pays \(\$ 72\) each time it places an order with the manufacturer. Holding costs are negligible (none) but they do earn \(14\%\) annual interest on all cash balances (meaning there will be a financial opportunity cost when they put cash into inventory). Annual demand is expected to be 5,750 units.When there is a \(1.00\%\) discount (Option Plan C, the third row of the schedule listed above), what is the adjusted order quantity? (Display your answer to the nearest whole number.) Based on your answer to the previous question, and based on the annual demand as stated above, what will be the annual ordering costs? (Display your answer to the nearest whole number.) Using the adjusted order quantity as determined above (two questions back), what will be the average number of units held in inventory? (Display your answer to the nearest whole number.) Using the adjusted order quantity as determined above (three questions back), and assuming a materials cost for the given discount, what will be the annual holding cost? (Display your answer to the nearest whole number.) Using the adjusted order quantity as determined above (four questions back), and assuming a materials cost for the given discount what will be the total annual inventory cost? (Display your answer to the nearest whole number.)

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

Human Resource Management Essentials You Always Wanted To Know

Authors: Vibrant Publishers, Jaquina Gilbert

1st Edition

1949395855, 978-1949395853

More Books

Students also viewed these General Management questions

Question

=+c) Should Shawn purchase the long-range predictions?

Answered: 1 week ago