Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 In Malaysia, Hijau Berhad imports and sells unique adjustable comb to a range of customers. The business is reevaluating its sourcing guidelines. Next

image text in transcribed

Question 5 In Malaysia, Hijau Berhad imports and sells unique adjustable comb to a range of customers. The business is reevaluating its sourcing guidelines. Next year, it anticipates selling 31,200 combs. Each comb costs RM4.80 and is offered for sale in dozens. The anticipated cost of storage and other carrying is RM0.20 per comb. The ordering cost is RM40 per order. The delivery time is two weeks, and there are 6,000 combs in the safety stock. About 28,000 dozen of these combs are needed each year to meet demand. Calculate: a) The optimal economic order quantity. b) The annual inventory cost for the company if it orders in this quantity

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 Finance questions

Question

Why are temperature swings smaller over coastal lands than inland?

Answered: 1 week ago