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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.How many orders will RFC place in a year?
20 orders
30 orders
40 orders
50 orders
What is the inventory turnover?
20 times
30 times
40 times
50 times
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
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