Question
The consumption of glue in the Ansari furniture workshop is estimated to be 18,000 liters in the next six months (180 days). This raw material
A) How many liters is the optimal order level (EOQ)? in optimal condition; What is the storage cost, order cost and total costs related to this inventory item?
B) If it takes three days from the order announcement to receiving the balance (DAYS 3 = TIME LEAD), where will the order point (OP) be? If this workshop wants to keep 1000 liters of safety stock (STOCK SAFETY = 1000 LITERS), what will be the order point?
Step by Step Solution
3.38 Rating (170 Votes )
There are 3 Steps involved in it
Step: 1
A Optimal order level EOQ and related costs The economic order quantity EOQ is the optimal order qua...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Accounting For Business
Authors: Peter Scott
3rd Edition
0198807791, 978-0198807797
Students also viewed these Finance questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App