Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I. MPH Book Stores orders 12.000 sticks of CHO glue. The cost of placing an order is RM70. The wholesale price of a stick is

image text in transcribed

I. MPH Book Stores orders 12.000 sticks of CHO glue. The cost of placing an order is RM70. The wholesale price of a stick is RM4 and the store carrying cost is 30% of wholesale price. If the safety stock level is maintained at 250 sticks and the ordering period is 15 working days based on 220 working days in a year. calculate the following: 2xSx0/C i. Economic order sticks. S2D0 S250 = 12(12000) (70)/ 4(0.30) (1.680,000/1.2 = 1183 units H Total inventory cost. S XO + E0Q + SS X CC E0Q 2 12000/1183 (70) + 183/2 + 250 x 12 710.06 + 10098 1719.86 units Number of sticks at reorder point. = (d x 1) + SS = (12000 x 15)/220 + 250 =1.068.18/1.068.2 2. Pinky White Company has an annual usage of inventory of 25. 000 units. The cost of placing an order is RM 130. The carrying cost of a company is RM 2.50 of its purchasing price. The company maintains 120 unitatstoale lavalandit normal I. MPH Book Stores orders 12.000 sticks of CHO glue. The cost of placing an order is RM70. The wholesale price of a stick is RM4 and the store carrying cost is 30% of wholesale price. If the safety stock level is maintained at 250 sticks and the ordering period is 15 working days based on 220 working days in a year. calculate the following: 2xSx0/C i. Economic order sticks. S2D0 S250 = 12(12000) (70)/ 4(0.30) (1.680,000/1.2 = 1183 units H Total inventory cost. S XO + E0Q + SS X CC E0Q 2 12000/1183 (70) + 183/2 + 250 x 12 710.06 + 10098 1719.86 units Number of sticks at reorder point. = (d x 1) + SS = (12000 x 15)/220 + 250 =1.068.18/1.068.2 2. Pinky White Company has an annual usage of inventory of 25. 000 units. The cost of placing an order is RM 130. The carrying cost of a company is RM 2.50 of its purchasing price. The company maintains 120 unitatstoale lavalandit normal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Applied Statistics In Business And Economics

Authors: David Doane, Lori Seward

4th Edition

73521485, 978-0073521480

Students also viewed these Finance questions

Question

Show enthusiasm for the position (but not too much).

Answered: 1 week ago