Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Queen Manufacturing uses 1 , 4 0 0 switch assemblies per week and then reorders another 1 , 4 0 0 . Assume the relevant

Queen Manufacturing uses 1,400 switch assemblies per week and then reorders another 1,400. Assume the relevant carrying cost per switch assembly is $5.10 and the fixed order cost is $580.
a. Calculate the carrying costs.
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32.
b. Calculate the restocking costs.
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32.
c. Calculate the economic order quantity.
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
d. Calculate the EOQ number of orders per year.
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
\table[[a. Carrying costs,],[b. Restocking costs,],[c. Economic order quantity,],[d. Number of orders,]]
image text in transcribed

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

Airline Finance

Authors: Peter S. Morrell

3rd Edition

0815387520, 9780815387527

Students also viewed these Finance questions