Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question No.1 An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1500 batteries. The supplier pays

Question No.1

An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The

annual demand is approximately 1500 batteries. The supplier pays 25 R.O for each battery

and estimates that the annual holding cost is 30% of the battery's value. It costs

approximately 30 R.O to place an order. The supplier currently orders 125 batteries per

month.

a. Determine the EOQ.

b. How many orders will be placed per year using the EOQ?

c. Determine the total cost for the current order quantity.

d. Determine the total inventory cost for the EOQ, How has ordering cost changed?

Question No2:

Find EOQ if annual demand is 5500 cases of Coco cola and fixed ordering cost is 15 R.O per

order and purchase cost is 3 R.O per case and holding cost is 25% of value of inventory per year.

....Please Solve 2 Question must send .. thank you very much

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

The Next Step Advanced Medical Coding And Auditing

Authors: Carol J. Buck

1st Edition

0323430775, 978-0323430777

More Books

Students also viewed these Accounting questions

Question

Compare the advantages and disadvantages of external recruitment.

Answered: 1 week ago

Question

Describe the typical steps in the selection process.

Answered: 1 week ago