What is the total annual inventory cost

Assignment Help Finance Basics
Reference no: EM13292294

Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit) and ther ordering cost per order is $18.75. There are 250 working days per year.

a) What is EOQ?
b)Given the EOQ, what is the average inventory? What is the annual inventory holding cost?
c) In minimizing cost,how many orders would be made each year? What would be the annual ording cost?
d) Given the EOQ, what is the total annual inventory cost(including purchase cost)?
e) what is the time between ordes?
f) what is the ROP?

 

Reference no: EM13292294

Previous Q& A

  What safety stock level do you recommend for bx-5

Linda would like to maintain a 90% service level. What safety stock level do you recommend for BX-5?

  What does the term the dark ages mean

What does the term the Dark Ages mean? In what ways were the Dark Ages dark? In what ways was this society inadvertently preparing to emerge in modernity through the preservation of classical literature and scripture?

  Explain the solutions equilibrate with the atmosphere

What pH will would measure for these solutions immediately? What would be the pH after the solutions equilibrate with the atmosphere

  What is the velocity of the other rock

Two rocks collide in outer space. Before the collision, one rock had mass 15 kg and velocity ‹ 4300, ?2700, 2350 › m/s. what is the velocity of the other rock

  Assess new technologies and the benefits the technologies

Write a document that will assess new technologies and the benefits the technologies will bring to an organization.

  What is the acceleration of the two block system

Consider the situation where a 5 kg block sits on top of a 10 kg block. The two blocks rest on a horizontal frictionless surface. What is the acceleration of the "two block" system

  How to calculate the ph of the endpoint

To determine the concentration of a 25.0 mL ammonia solution (Kb for NH3 is 1.8 x 10-5), 25.0 mL of 0.200 M HCl solution is used. Calculate the pH of the endpoint.

  What is the effective rate of interest

Koopman's Chickens, Inc. plans to borrow $275,000 from its bank for one year. The rate of interest is 9 percent, but a compensating balance of 20 percent is required. What is the effective rate of interest?

  Calculate the speed of the river

A motorboat takes passengers between two ports on a river 20 km away. what is the speed of the river

  Explain what is the molarity of the ba(oh)2 solution

A 50.0 mL sample of constant-boiling HCl with a concentration of 0.1166 M was collected and titrated to an end point with 37.17 mL of Ba(OH)2 solution. What is the molarity of the Ba(OH)2 solution

Reviews

Write a Review

 

Similar Q& A

  Evaluate the current performance management system

Would you enlist input from the employees in your department? Why, or why not? List and interpret the criteria you would use to evaluate the current performance management system.

  Calculate the impact of the exhibit on company profit

Depreciation of office equipment 3,600 Printing of advertising materials 700 Advertising in Middleton Journal 2,500 Travel expenses other than depreciation of autos (variable cost) $2,400 Depreciation of company cars 9,000 Required: Calculate the ..

  Calculate the total market value

In addition, the company has a second debt issue on the market, a zero coupon bond with three years left to maturity; the book value of this issue is $76 million and the bonds sell for 78 percent of par.

  Develop a personal financial planning budget

Develop a personal financial planning budget. This budget can represent a budget for a fictitious individual; however, make sure you include the following.

  What is the return on equity

High Mountain Foods has an equity multiplier of 1.55, an asset utilization rate of 1.1', and a profit margin of 7.5%. What is the return on equity?

  What is the truck optimal economic life

Would the introduction of abandonment values, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a project?

  What is the invoice price

You purchase a bond with a coupon rate of 9.3 percent and a clean price of $945. If the next semiannual coupon payment is due in two months, what is the invoice price?

  What is project lmks net present value

Project LMK requires an initial outlay of $400,000 and has a profitability index of 1.5. The project is expected to generate equal annual cash flows over the next twelve years. The required return for this project is 20%. What is project LMK's net..

  Finance-project evaluation and leverage

Explain the following project evaluation processes: NPV, Payback, AAR, IRR. Is any one evaluation process better the others? Why?

  What is the yield to call on the bonds

Santos Energy has 9.5% annual coupon bonds outstanding with 15 years left until maturity. The bonds have a face value(FV) of $1,000 and their current market price (PV)is $1,007.76. What is the YTM on Santos's bonds?

  What is the 95 percent probability range of returns

Assume that for a period of time, long-term corporate bonds had an average return of 7.1 percent with a standard deviation of 10.2 percent. What is the 95 percent probability range of returns?

  How financial intermediaries affect the availability

Describe how financial intermediaries affect the availability of financing for corporations and determine the impact you think the Internet will have on the activities and importance of intermediaries.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd