Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

IM.84 An outdoor equipment manufacturer sells a rugged water bottle to complement its product line. They sell this item to a variety of sporting goods

IM.84 An outdoor equipment manufacturer sells a rugged water bottle to complement its product line. They sell this item to a variety of sporting goods stores and other retailers. The manufacturer offers quantity discounts per the following discount schedule:

Option Plan Quantity Price
A 1 - 2,699 $3.75
B 2,700 - 5,299 $3.25
C 5,300+ $2.65

A large big-box retailer expects to sell 9,900 units this year. This retailer estimates that it incurs an internal administrative cost of $245 each time it places an order with the manufacturer. Holding cost for the retailer is $80 per case per year. (There are 48 units or water bottles per case.) Based on this information, and not taking into account any quantity discount offers, what is the calculated EOQ (in units)? (Display your answer to the nearest whole number.)

Based on this information, sort each quantity discount plan from left to right by dragging the MOST preferred option plan to the left, and the LEAST preferred option plan to the right:

Option Plan B

Option Plan C

Option Plan A

For the MOST preferred option, what will be the annual material cost? (Display your answer to the nearest whole number.)

For the MOST preferred option, what will be the annual ordering cost? (Display your answer to the nearest whole number.)

For the MOST preferred option, what will be the average inventory? (Display your answer to the nearest whole number.)

For the MOST preferred option, what will be the total annual inventory cost? (Display your answer to the nearest whole number.)

I have this so farimage text in transcribed

Based on this information, and not taking into account any quantity discount offers, what is the calculated EOQ (in units)? (Display your answer to the nearest whole number.) Based on this information, sort each quantity discount plan from left to right by dragging the MOST preferred option plan to the left, and th LEAST preferred option plan to the right: For the MOST preferred option, what will be the annual material cost? (Display your answer to the nearest whole number.) For the MOST preferred option, what will be the annual ordering cost? (Display your answer to the nearest whole number.) For the MOST preferred option, what will be the average inventory? (Display your answer to the nearest whole number.) For the MOST preferred option, 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

Mindfulness For Anger Management

Authors: Stephen Dansiger

1st Edition

1641521678, 978-1641521673

More Books

Students also viewed these General Management questions

Question

How do todays organizations diff er from those of earlier eras?

Answered: 1 week ago