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please and thanks a---h (Comprehensive EOQ calculations) Krutson Products inc. is involved in the production of airplane parts and has the following inventory, carrying, and
please and thanks a---h
(Comprehensive EOQ calculations) Krutson Products inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs: 1. Orders must be placed in round lots of 100 units: 2. Annual unit usago is 100,000. (Assume a 50-week year in your calculations.) 3. The carrying cost is 20 percent of the purchase price. 4. The purchaso price is $30 per unit. 5. The ordering cost is $100 per order. 6. The desired safety stock is 4,000 units. (This does not include dolivery-time stock.) 7. The delivery time is 5 week. Given the foregoing information: a. Determine the optimal EOQ level: b. How many orders will be placed annually? c. What is the inventory order point? (That is, at what level of inventory should a new order be placed?) d. What is the averago inventory level? d. What is the averape inventory level? (That is, what is the percentege change in EOQ divided by the percentage change in sales?) (That is, what is the percentago change in EOQ divided by the percentage change in sales?) a. If the ordering costs double, what wil happen to the level of EOC? (Apain, assume original levels of sales and carrying costs.) What is the elasticity of EOQ with respect to ordering costs? h. If the soling price doubles, what will happen to EOC? What is the elasticity of EOQ with respect to seling prico? a. What is the optimal economic order quantty (EOQ) levol? (Note that orders must be placed in round lots of 100 units.) units (Round up to the nearest hundred.) Step by Step Solution
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