Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Traci, the new inventory manager at Magyar Golf Supplies, is considering using the economic order quantity for controlling inventory. She wants to apply the EOQ

Traci, the new inventory manager at Magyar Golf Supplies, is considering using the economic order quantity for controlling inventory. She wants to apply the EOQ to a sample product, the Super-Z Wedge. The Super-Z Wedge has an average demand of 30 units/period with an ordering cost of $30/order. The cost of carrying a Super-Z Wedge in inventory is $2.00/unit/period. No safety stock is carried for this item.

a. Calculate the economic order quantity.

b. Calculate the average cycle stock for this item using the order quantity in question a.

c. Assuming there are 12 periods per year, calculate total cost per year. for the answer put $620 per year as a whole number. So in the box put 620 as the answer no number sign

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

Step: 3

blur-text-image

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

Investments Analysis And Management

Authors: Charles Jones, Nick Jones

11th Edition

0470477121, 9780470477120

More Books

Students also viewed these Finance questions

Question

How can related party transactions affect the financial statements?

Answered: 1 week ago

Question

Summarize various training methods.

Answered: 1 week ago

Question

Explain the metrics for evaluating training and development.

Answered: 1 week ago

Question

Identify career planning approaches.

Answered: 1 week ago