Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all the three parts asap Question (10 marks) Dean International sells a single product, product Delta which it imports from Bangladesh. The following

Please answer all the three parts asap

image text in transcribed

Question (10 marks) Dean International sells a single product, product Delta which it imports from Bangladesh. The following information pertains to Product Delta: Annual demand Ordering cost per order Carrying costs per unit for one year Lead time (maximum 2 weeks) Maximum demand per week Work year Order lot size (Q) calculated using the EOQ model 27,040 units $1,000 $50 1 week 580 units 50 weeks 1040 units Required: 1. Calculate the reorder point assuming average demand and average lead tim e. (3 marks) 2. Calculate the safety stock needed to prevent stockouts, assuming maximum demand but delivery is on time. (3 marks) 3. 3a 3b Given safety stock holding calculated in requirement 2, calculate, the: New annual ordering cost. If no change, explain why. New annual carrying cost. If no change, explain why. (2 marks) (2 marks)

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

More Books

Students also viewed these Accounting questions

Question

=+f. Audience Engagement encourage consumer participation.

Answered: 1 week ago

Question

=+d. Emotional Approach appeal to consumers' emotions.

Answered: 1 week ago