Business, 19.06.2020 00:57, TVASALLO31

A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUs Following are the characteristics of one item. Refer to the standard normal table for z-values. Demand (D) = 110 units/week (Assume 48 weeks per year) Ordering and setup cost (S) = $45/order Holding cost (H) = $14.00/unit/year Lead time (L) = 3 weeks Standard deviation of weekly demand = 21 units Cycle-service level = 90 percent a. What is the EOQ for this item? units. (Enter your response rounded to the nearest whole number.)
b. What is the desired safety stock? units. (Enter your response rounded to the nearest whole number.)
c. What is the reorder point? units. (Enter your response rounded to the nearest whole number.)
d. What are the cost implications if the current policy for this item is Q = 300 and R = 370? The annual ordering cost is $ (enter your response rounded to two decimal places) and the annual holding cost is $

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 04:30, csteward2917

Your take on decision making process

Answers: 1

continue

Business, 22.06.2019 11:00, igtguith

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow

Answers: 1

continue

Business, 22.06.2019 12:30, bcarri4073

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.

Answers: 1

continue

Business, 22.06.2019 17:00, nawaphon1395

Alpha company uses the periodic inventory system for purchase & sales of merchandise. discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. unless otherwise noted, fob destination will apply to all purchases & sales. the value of inventory is based on periodic system. on january 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. alpha prepares monthly income statements. the following events occurred during the month of jan.: dateactivitya. jan. 3purchased on account 350 widgets for $11 each. b.jan. 5sold on account 400 widgets for $30 each. paid freight out with petty cash of $150.c. jan. 10purchased on account 625 widgets for $12 each. d.jan. 11shipping cost for the january 10 purchased merchandise was $400 was paid with a cheque by alpha directly to the freight company. e.jan. 12returned 50 widgets received from jan. 10 purchase as they were not the correct item ordered. f.jan. 13paid for the purchases made on jan. 3.g. jan. 21sold on account 550 widgets for $30 each. paid freight out with petty cash of $250.h. jan. 22authorize credit without return of goods for 50 widgets sold on jan. 21 when customer advised that they were received in defective condition. i.jan. 25received payment for the sale made on jan. 5.j. jan. 26paid for the purchases made on jan. 10.k. jan. 31received payment for the sale made on jan. 21.use this information to prepare the general journal entries (without explanation) for the january events. if no entry is required then enter the date and write "no entry required."

Answers: 2

continue

Do you know the correct answer?

A company begins a review of ordering policies for its continuous review system by checking the curr...