c. What is the annual cost for storing item X?Note: Round your order quantity to the nearest whole number and your final answer to 2 decimal places.Holding cost Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about2,600 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $7 per unit of averageinventory. Every time an order is placed for more of item X, it costs $26.a. Whenever item X is ordered, what should the order size be?Note: Round your answer to the nearest whole number.Order sizeb. What is the annual cost for ordering item X?Note: Round your order quantity to the nearest whole number and your final answer to 2 decimal places.Ordering cost

Given Demand D = 2600Cost C = $25 eachStorage cost or Holding cost H =$7Ordering cost S = $26a)…

Answered: c. What is the annual cost for storing…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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39 Item X Is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more of item X, it costs $20. a. Whenever item X is ordered, what should the order size be? Note: Round your answer to the nearest whole number. b. What is the annual cost for ordering item X? Note: Round your order quantity to the nearest whole number and your final answer to 2 decimal places.
Item X is a standard item stocked in a company’s inventory of component parts. Each year, the firm, on a random basis, uses about 2,000 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of averageinventory. Every time an order is placed for more of item X, it costs $10.a. Whenever item X is ordered, what should the order size be?b. What is the annual cost for ordering item X?c. What is the annual cost for storing item X?
Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,400 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $4 per unit of average inventory. Every time an order is placed for more item X, it costs $18. Calculate the order quantity and the annual ordering cost for item X.
The expected annual usage of a particular material is 540,000 units, and the standard order size is 36,000 units. The invoice cost of each unit is P900, and the ordering cost per order is P240. Assuming the company does not maintain safety stock. a. What is the average inventory? b. What is the ordering cost?
The demand for a commodity is 40,000 units a year, at a steady rate. It costs $20 to place an order, and $0.40 to hold a unit for a year. Find the order size to minimize inventory costs, the number of orders placed each year, the length of the inventory cycle and the total costs of holding inventory for the year. What is the EOQ? What is the number of orders placed each year? What is the inventory cycle (length of time that the the order size will last)? in terms of weeks What is the total ordering & carrying costs at the EOQ level?
NEED ALL THREE QUESTIONS Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $9 per unit of average inventory. Every time an order is placed for more item X, it costs $6. a. Whenever item X is ordered, what should the order size be? (Round your answer to the nearest whole number.) b. What is the annual cost for ordering item X? (Round your answer to 2 decimal places.) c. What is the annual cost for storing item X? (Round your answer to 2 decimal places.)
CU Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price break and other data for the problem. Price copper $ .81 per pound up to 2,499 pounds .80 2,500-4,999 pounds .78 5,000 pound or greater Annual demand 51,000 pounds per year Holding cost 30 % per unit/yr. Of the price of copper Ordering cost $ 30 Which quantity should be ordered?
Penalty costs can be assessed only against the number of units of demand that cannot be satisfied, or against the number of units weighted by the amount of time thatan order stays on the books. Consider the following history of supply and demandtransactions for a particular part:Number of Items Demand duringMonth Received MonthJanuary 200 520February 175 1,640March 750 670April 950 425May 500 280June 2,050 550Assume that starting inventory at the beginning of January is 480 units.a. Determine the ending inventory each month. Assume that excess demands areback-ordered.b. Assume that each time a unit is demanded that cannot be supplied immediately,a one-time charge of $10 is made. Determine the stock-out cost incurred duringthe six months (1) if excess demand at the end of each month is lost, and (2) ifexcess demand at the end of each month is back-ordered.c. Suppose that each stock-out costs $10 per unit per month that the demandremains unfilled. If demands are filled on a first-come,…
39) please help me with this Item X Is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2.700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more of item X, it costs $20 c. What is the annual cost for storing item X? Note: Round your order quantity to the nearest whole number and your final answer to 2 decimal places.
Assume that JAO, Inc., a manufacturer of electronic test equipment, uses 14,400 units of an item annually. Its order cost is P500 per order, and the carrying cost is P10 per unit per year. It requires 10 days to place and receive an order. 1. The ordering costs is 5,696 4,026 6,000 4,8002. The inventory costs is 6,000 12,000 9,600 8,052
A manufacturer’s annual demand is 6000 units. The current units per order is $100. The setup cost is $50 per order and the holding cost is $7 per unit. The cost per unit is $2.50. The Number of work days is 250 per year. What is the annual setup cost? What is the annual holding cost? What is the optimal order quantity (EOQ)? Using the EOQ, how many orders should be placed per year? What is the interval between orders? What is the inventory administration cost? What is the total cost of inventory?
Daily demand for a certain product is normally distributed with a mean of 100 and a standarddeviation of 15. The supplier is reliable and maintains a constant lead time of 5 days.The cost of placing an order is $10 and the cost of holding inventory is $0.50 per unit peryear. There are no stockout costs, and uni lled orders are i lled as soon as the order arrives.Assume sales occur over 360 days of the year.Your goal here is to i nd the order quantity and reorder point to satisfy a 90 percentprobability of not stocking out during the lead time.a. What type of system is the company using?b. Find the order quantity.c. Find the reorder point.

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