Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Speedy Manufacturers wishes to determine the economic order quantity (EOQ) for a critical and expensive inventory item that is used in large amounts at a relatively constant rate throughout the year.

The firm uses 223 200 units of the item annually. Ith has order cost of R150 per order and its carrying costs associated with this item are R20 per unit per year.

The firm plans to hold safety stock of the item equal to 4 days of usage and it estimates that it takes 10 days to receive an order of the item once placed. Assume a 360 day year.

Required:
4.1 find out the firm's EOQ for the item inventory described above.
4.2 What is the firm's total cost based upon the EOQ find outd in 4.1.
4.3 How many units of safety stock should the firm hold?
4.4 What is the firm's re-order point for the item on inventory being evaluated.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M926237

Have any Question? 


Related Questions in Basic Finance

Use psycinfo or a similar database to find a

Use PsycINFO or a similar database to find a quasi-experimental or nonexperimental research study. (Note: Try using a specific term such as nonequivalent control group or cross-sectional as a search term. Or look for a t ...

Use primary and secondary sources to write a report about

Use primary and secondary sources to write a report about your future career. Explore a career position that interests you. Determine the job outlook, present level of employment, salary trends, typical responsibilities, ...

1 what is the advantage of using multiple measures for a

1. What is the advantage of using multiple measures for a single variable? What is the disadvantage? 2. Briefly explain how a ceiling effect (or floor effect) can affect the outcome of a research study.

1 name possible mortgageable interests in real estate and

1. Name possible mortgageable interests in real estate and comment on their risk as collateral to lenders. 2. What is meant by mortgage foreclosure, and what alternatives are there to such action? 3. Explain the differen ...

Suppose your firm had issued a 12 percent annual coupon

Suppose your firm had issued a 12 percent annual coupon, 15-year bond, callable at par at the 8th year. It is now two years later, so the bonds are not callable for another 6 years. At this time, new bonds could be issue ...

The unemployment rate in a city is 12 if 9 people from the

The unemployment rate in a city is 12%. If 9 people from the city are sampled at random, find the probability that fewer than 2 of them are unemployed. Carry your intermediate computations to at least four decimal places ...

An investor can make an investment in a real estate

An investor can make an investment in a real estate development and receive an expected cash return of $45,000 at the end of six years. Based on a careful study of other investment alternatives, she believes that a 9 per ...

Wampc is examining its cash conversion cycle the company

W&C is examining its cash conversion cycle. The company expects its cost of goods sold, which equal 85% of sales, to equal $770,000 this year. W&C normally turns over inventory 25 times per year, account receivable are t ...

1 which of the gaps in figure 3- 1 do you think represents

1. Which of the gaps in Figure 3- 1 do you think represents the major problem for most firms? How can a company attempt to eliminate the knowledge gap? The communications gap? 2. Compare and contrast the customer service ...

In the capm investors should be compensated for accepting

"In the CAPM, investors should be compensated for accepting systematic risk; for the APT model, investors are rewarded for accepting both systematic risk and unsystematic risk." Do you agree with this statement?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro