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The 3 requirements please Fan World (FW) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is
The 3 requirements please
Fan World (FW) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its soccer jerseys product line. This is a highly popular item. Data for the year are: (Click the icon to view the information.) Each jersey costs FW $43 and sells for $85. The $10 carrying cost per jersey per year comprises the required return on investment of $6.02 ( = 14% of $43 purchase price) plus $3.98 in relevant insurance, handling, and theft-related costs. The purchasing lead time is 7 days. FW is open 364 days a year. Required Requirement 1. Calculate the EOQ. Begin by selecting the formula used to calculate EOQ. (D = Demand in units for one year, P = Ordering cost per purchase order, C = Carrying cost of one unit in stock, Q = Any order quantity) EOQ= 2DP The EOQ for soccer jerseys is jerseys. (Round your answer to the nearest whole number.) Fan World (FW) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its soccer jerseys product line. This is a highly popular item. Data for the year are: 6 (Click the icon to view the information.) Each jersey costs FW $43 and sells for $85. The $10 carrying cost per jersey per year comprises the required return on investment of $6.02 ( = 14% of $43 purchase price) plus $3.98 in relevant insurance, handling, and theft-related costs. The purchasing lead time is 7 days. FW is open 364 days a year. Required Required Requirement 1. Calculate the EOQ. Begin by selecting the formula used (D = Demand in units for one year, P antity) 1. Calculate the EOQ. 2. Calculate the number of orders that will be placed each year. 3. Calculate the reorder point. Print Done Fan World (FW) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its soccer jerseys product line. This is a highly popular item. Data for the year are: (Click the icon to view the information.) Each jersey costs FW $43 and sells for $85. The $10 carrying cost per jersey per year comprises the required return on investment of $6.02 ( = 14% of $43 purchase price) plus $3.98 in relevant insurance, handling, and theft-related costs. The purchasing lead time is 7 days. FW is open 364 days a year. Required X ........ Information Requirement 1. Calculate the EOQ. Begin by selecting the formula used (D = Demand in units for one year, P antity) Expected annual demand for soccer jerseys 44,200 Ordering cost per purchase order $170 Carrying cost per year $10 per jersey Print DoneStep by Step Solution
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