Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maria's Candle Company manufactures candles. The company buys wax in 45-Kilogram containers that cost $17 each. The company uses 25,000 containers per year, and usage

Maria's Candle Company manufactures candles. The company buys wax in 45-Kilogram containers that cost $17 each. The company uses 25,000 containers per year, and usage occurs evenly throughout the year. The average cost to carry a 45-Kilogram container in inventory per year is $3, and the cost to place an order is $9. The company works 250 days per year.

The economic order quantity (rounded) is

a.

1,000 containers.

b.

750 containers.

c.

45 containers.

d.

387 containers.

The lead time is 4 working days and the average rate of usage is 60 containers per day. What is the reorder point?

a.

240 containers

b.

260 containers

c.

220 containers

d.

200 containers

The lead time is 4 working days, the average rate of usage is 60 containers per day, and the company carries a safety stock of 25 containers. What is the reorder point?

a.

285 containers

b.

245 containers

c.

265 containers

d.

225 containers

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_2

Step: 3

blur-text-image_3

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

Auditing A Modern Approach

Authors: Sanjay Basotia

1st Edition

938092903X, 978-9380929033

More Books

Students also viewed these Accounting questions

Question

Explain all drawbacks of the application procedure.

Answered: 1 week ago