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Siyanda Fibre Optics is a company that manufactures optic fibre cables. They use 2 000 drums of optic fibre per month. Siyanda Fibre Optics orders
Siyanda Fibre Optics is a company that manufactures optic fibre cables. They use 2 000 drums of optic fibre per month. Siyanda Fibre Optics orders 500 drums per order and they have to wait 15 working days before receiving the orders. The daily demand for drums is 25. The inventory carrying cost per unit is R145.00 while the fixed cost per order is R50. After careful consideration, Siyanda Fibre Optics decided to keep safety inventory of 35 drums.
Calculate the inventory carrying cost (ICC) for the year.
Calculate the total ordering cost (TOC)
Calculate the re-order point (ROP) for Siyanda Fibre Optics.
Siyanda Fibre Optics is a company that manufactures optic fibre cables. They use 2 000 drums of optic fibre per month. Siyanda Fibre Optics orders 500 drums per order and they have to wait 15 working days before receiving the orders. The daily demand for drums is 25. The inventory carrying cost per unit is R145.00 while the fixed cost per order is R50. After careful consideration, Siyanda Fibre Optics decided to keep safety inventory of 35 drums.
Calculate the inventory carrying cost (ICC) for the year.
Calculate the total ordering cost (TOC)
Calculate the re-order point (ROP) for Siyanda Fibre Optics.
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
6th International Edition
0071229035, 978-0071229036
