Question
koala sells 234,000 packages of designer sheets each year. incurs an ordering cost of 81 dollars per order and an annual carrying cost of 11.70
koala sells 234,000 packages of designer sheets each year. incurs an ordering cost of 81 dollars per order and an annual carrying cost of 11.70 per package. needs to understand how ordering and carrying costs vary with order quantity. 1. complete 1 2 3 4 5 annual demand 234,000 1 - 5 costs per order 81 1-5 carrying cost per package 11,70 1-5 quantity per purchase order 900, 1,500, 1,800, 2,100, 2,700 number of purchase orders per year annual relevant ordering costs annual relevant carrying costs annual total relevant costs of ordering and carrying inventory 2. select the proper formula to calculate the EQC a) square root of 2DP/C b) D/(1+P) square root c c) DP/Q + DC/2 3. The EDQ is ______ packages the total relevant ordering and carrying costs, when ordering quantity ranges from 1,500 to 2,700 packages. a) do not vary much b) vary drastically requirement 2 calculate the edq when ordering costs will be reduced to 49 dollars per purchase order: the eoq will be ____ packages now calculate the new annual relevant costs of ordering and carrying inventory with the new purchase order cost: annual relevant ordering costs annual relevant carrying costs annual total relevant costs of ordering and carrying inventory requirement 3 help to present a case to upper management showing whether or not training costs will be able to be recouped within the first year of adoption annual a)cost savings
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