Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help asap!!!!!! RajDee Furniture Company (RFC) buys and sells office furniture. The company buys chairs from a manufacturer for $40 per unit. Order costs

need help asap!!!!!!
RajDee Furniture Company (RFC) buys and sells office furniture. The company buys chairs from a manufacturer for $40 per unit. Order costs are $200 per order and there is a lead time of 10 days for each order to arrive from the manufacturer to RFC warehouse. Inventory carrying cost for RFC is 10%. Average yearly demand for the chairs is 40,000 units. Answer the following questions, assuming there is no uncertainty at all about the demand or the lead time.
  1. How many orders will RFC place in a year?

    20 orders

    30 orders

    40 orders

    50 orders

    1. What is the inventory turnover?

      20 times

      30 times

      40 times

      50 times

    1. What is the annual ordering cost?

      $1,000

      $2,000

      $3,000

      $4,000

      If average lead time went up from 10 to 15 days, what will happen to EOQ?

      Increase of 200 units

      Decrease of 200 units

      No change in EOQ

      Increase of 100 unit

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

Modern Management Concepts And Skills

Authors: Samuel Certo, S Certo, S. Certo

15th Edition

0134729137, 9780134729138

More Books

Students also viewed these General Management questions