Orders should be placed so that the new order arrives before existing inventory runs out. when to order can be calculated by multiplying the average order lead time by the average daily inventory use. this calculation is called the reorder point (rop).rop = lt * average daily demand, where average daily demand = annual demand / business days because of variability in daily usage and/or order lead time, a company may hold some safety stock. problems: antique manufacturers old-fashioned, rotary telephones for use in movie scenes (and other displays). worldwide demand is 44,000 phones per year. the rotary dial on each phone costs $0.75. set up costs are $8. the carrying costs are 12%. 1. what is the economic order quantity (eoq)? 2.what are the annual order costs? 3.what are the annual carrying costs? 4.if antique operates 250 eight-hour days per year and the lead time is eight days, what is the rop?
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 11:20, greatsavagebeast
Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.
Answers: 3
Business, 23.06.2019 00:30, josephfoxworth
Emerson has an associate degree. based on the bar chart below, how will his employment opportunities change from 2008 to 2018
Answers: 2
Do you know the correct answer?
Orders should be placed so that the new order arrives before existing inventory runs out. when to or...
Questions in other subjects:
Social Studies, 05.10.2019 22:00
English, 05.10.2019 22:00
