Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me figure out A-F Problem 7-9 Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand 31 units

Please help me figure out A-F image text in transcribed
image text in transcribed
Problem 7-9 Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand 31 units per day Average lead time = 45 days Item unit cost S65 for orders of less than 350 units item unit cost-$63 for orders of 350 units or more Ordering cost $40 Inventory carrying cost = 20% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time a. Calculate EOQ if unit cost is $65 and $63. (Note: These EOQs do not need to be feasible in their price range.) (Round up your answers to the next whole number) EoO Unit cost at $65 units Unit cost at $63 units b. Calculate annual ordering costs for each alternative? (Round your answers to 2 decimal places.) Orderi Unit cost at $65 Unit cost at $63

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

Database Security And Auditing Protecting Data Integrity And Accessibility

Authors: Hassan A. Afyouni

1st Edition

0619215593, 9780619215590

More Books

Students also viewed these Accounting questions