Respuesta :
Answer:
a. 864 units
b. 23.14 orders
c. Â $2,081
d. 10.8 days
e. 320
f. $221,081
Explanation:
a. The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
where,
Annual demand = 80 units per day × 250 days = $40,000
And, the carrying cost = $10.95 × 22% = $2.409
The other items values would remain the same
Now put these values to the above formula
So, the value would be equal to
= [tex]\sqrt{\frac{2\times \text{20,000}\times \text{\$45}}{\text{\$2.409}}}[/tex]
= 864 units
b. The number of orders would be equal to
= Annual demand ÷ economic order quantity
= $20,000 ÷ 864 units
= 23.14 orders
The average inventory would equal to
= Economic order quantity ÷ 2
= 864 units ÷ 2
= 432 units
c. The total cost of ordering cost and carrying cost equals to
Ordering cost = Number of orders × ordering cost per order
= 23.14 orders × $4 5
= $1,041.30
Carrying cost = average inventory × carrying cost per unit
= 432 units × $2.409
= $1040.688
So, the total would be Â
= $1,041.30+ $1,040.688
= $2,081
d. The number of days would be
= Economic order quantity  ÷ daily demand
= 864 units ÷ 80 days
= 10.8 days
e. The reorder point would be
= Number of orders × demand level
= 4 days × 80
= 320
f. The total cost would be
= Annual demand × cost of each unit + total cost of ordering and carrying cost
= 20,000 × $10.95 + 2,081
= $221,081
