What is the unit carrying cost of the jackets for the season

Assignment Help Operation Management

Reference no: EM13901045

A retailer is making decision to procure a branded winter jacket after observing the initial sales for the winter season. Assume the winter season is consists of four months. The retailer sells an average of 1500 jackets a season. Preparing an order and receiving a shipment of winter jacket involves a cost of $550 per order. The purchasing price of the jacket is $30 and the annual (inventory) carrying cost of the jacket is 25% of the purchasing price.

Hints: Holding cost per season = [(25%)× (item cost)×( months in a season)]/(no of months in a year)

Assuming four months in the winter season. What is the unit carrying cost of the jackets for the season? I have 2.5

Using carrying cost determined by (a), what is the economic order quantity. I have 812 jackets

Compute total cost of reordering & carrying jackets. I have $2,031

If ordering costs were to increase by $100 per order, how much would that affect the total cost? I have $2,207.94 effecting cost by $176.94

[Hint: Find Qnew for ordering cost = $550+$100 = $650.]

Reference no: EM13901045

Questions Cloud

Calculate the total bond interest expense over the bonds : Ellis issues 6.5%, five year bonds dated January 1, 2013, with a $ 250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $ 255,333. The annual market rate is 6% on the issue date.

Major difference between when writing marketing plan : What’s the major difference between when writing a marketing plan for a domestic market and for an international market. Kindly explain extensively

Is there evidence of a permanent structural break : Is there evidence of a permanent structural break in 1989? Test and explain the results - Are the estimated parameters of this model significantly different from 0?

Most current news on the subject : Write a paper on greenhouse gases with a strong emphasis on chemistry. It should be based on factual information and expert knowledge, and use only top peer-reviewed journals covering the most current news on the subject. Please include at least 5..

What is the unit carrying cost of the jackets for the season : A retailer is making decision to procure a branded winter jacket after observing the initial sales for the winter season. Assume the winter season is consists of four months. The retailer sells an average of 1500 jackets a season. Assuming four month..

Paper on global warming and mount kilimanjaro : As the snows on Mount Kilimanjaro keep vanishing and the race is on among countries to secure a portion of the North Pole that gets increasingly ice-free each passing year, our species seems to be abruptly awakened from its deep slumber by the rea..

Calculate thefederal tax payable for the year : (Preferably you use the CRA forms to answer the question. CRA web site:http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html). Calculate theFederal tax payable for the year 2010 for Mrs. Smith, given the following information:

Characteristics of a high-performing marketing organizations : This article lists all the defining characteristics of a high-performing marketing organizations. For each of them, please use your own words to explain, and also provide an appropriate example. When choosing examples, you can elaborate on example..

What is the organization or group''s website? : What is the organization or group's website?

User Account

All Pages