Total annual inventory cost , Managerial Accounting

Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant by the year. These brackets are purchased from a supplier 100 miles away for $15 every, and the lead time is 2 days. The holding cost per bracket anually is $1.50 (or 10% of the unit cost) and the ordering cost per order is $18.75. There are 300 working days per year.

 

(a) What is the EOQ?

(b) Given the EOQ, what is the average inventory? What is the yearly inventory holding cost?

(c) In minimizing cost, how many orders would be made every  year? What would be the annual ordering cost?

(d) Given the EOQ, what is the total annual inventory cost (having purchase cost)?

(e) What is the time between orders?

(f) What is the ROP?

 

 

 

 

Posted Date: 3/21/2013 2:14:45 AM | Location : United States







Related Discussions:- Total annual inventory cost , Assignment Help, Ask Question on Total annual inventory cost , Get Answer, Expert's Help, Total annual inventory cost Discussions

Write discussion on Total annual inventory cost
Your posts are moderated
Related Questions
Calculate Transfer Price - Management Control System? Question: Compute the Transfer Price for Product X and Y and the Standard Cost of Product Z as the intra company pricing r


Explain the Features of budgetary control From the definition the following features of budgets control emerge: 1) Establishment of budgets: budgets are prepared for each

discuss the applicability of an operating cycle in vegetable growing in a low developed country like Uganda- Africa

what is nile's strategy for success in the marketplace ?

RELEVANT COSTS FOR NON-ROUTINE DECISIONS A relevant cost is a cost that is appropriate to a specific management decision. To be relevant, a cost should be: 1) Future cost

Logan Products computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year, it estimated that 39,000 direct labor-hours would

CHOOSING ORDER QUANTITY (SIZE—PROBLEM) The objective of inventory decisions is usually to minimize total inventory costs to the company. Costs are ascribed to all elements whic

Question 1 The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. Sundry Debtors

Adm2341 manufactures and sells four different products. The following data are extracted from the most recent financial statements:   Products