Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Ltd is a company based in Cape Town. XYZ Imports printers from China and sells it to local clients. Delivery normally takes 2 weeks.

XYZ Ltd is a company based in Cape Town. XYZ Imports printers from China and sells it to local clients. Delivery normally takes 2 weeks. XYZ sells 5011 printers on average per year. Annual costs is 21%.XYZ negotiated the purchase price per printer to be R304. Every time that XYZ paces an order te fixed ordering costs per order is R1079.

What is the economic order quantity of printers of XYZ?

Assuming certainty in delivery and usage, at what inventory level should the firm reorder?

Assume a 230-unit safety stock is carried. What will the additional inventory cost be?

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

Auditor Going Concern Reporting A Review Of Global Research And Future Research Opportunities

Authors: Marshall A. Geiger, Anna Gold, Philip Wallage

1st Edition

0367649489, 978-0367649487

More Books

Students also viewed these Accounting questions

Question

Presentation Aids Practicing Your Speech?

Answered: 1 week ago