To make a product it costs $24 per liter. The importation cost is a fixed cost of $ 150 additional of the unit costs. The time that takes from placing the order to receiving it is 5 weeks. During this time the average consumed is 80 liters with a std dev. of 4 liters. If the products ends the costs is $45 per liter. They work 52 weeks a year. The anual interest is 20%

What is the order size and reorder point if we want to accomplish 90% of demand in the cycles?

What is the order size and reorder point if we want to minimize average costs? what would be service level type 2?

Question

To make a product it costs $24 per liter. The importation cost is a fixed cost of $ 150 additional of the unit costs. The time that takes from placing the order to receiving it is 5 weeks. During this time the average consumed is 80 liters with a std dev. of 4 liters. If the products ends the costs is $45 per liter. They work 52 weeks a year. The anual interest is 20%

What is the order size and reorder point if we want to accomplish 90% of demand in the cycles?

What is the order size and reorder point if we want to minimize average costs? what would be service level type 2?

Accepted Answer

The Answer is in the image, click to view ...

Question

To make a product it costs $24 per liter. The importation cost is a fixed cost of $ 150 additional of the unit costs. The

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Accounting Principles

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question