Cheeseburger and Taco Company purchases 12,266 boxes of cheese each year. It costs $17 to place...

Cheeseburger and Taco Company purchases 12,266 boxes of cheese each year. It costs $17 to place and ship each order and $3.44 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual total inventory management costs of cheese inventory.

Round the answer to two decimals

Expert Solution

Optimal order quantity	=	[ 2* annual demand* cost per order/ holding cost per unit per year] ^1/2
Optimal order quantity	=	[2 1226617/3.44] ^1/2
	=	348.19


Number of orders	=	12266/348.186330763045
		35.23

Ordering cost	=	35.2282640536728*17
	=	598.8804889


Holding cost	=	348.186330763045/2 *3.44
		598.8804889


Total cost	=	598.880488912437+598.880488912437
	=	1197.760978

Answer is:

1197.76

jeff jeffy answered 2 years ago

Cheeseburger and Taco Company purchases 14,321 boxes of cheese each year. It costs $26 to place...

Cheeseburger and Taco Company purchases 14,321 boxes of cheese each year. It costs $26 to place and ship each order and $6.91 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is the average inventory held during the year?

Cheeseburger and Taco Company purchases 5,702 boxes of cheese each year. It costs $27 to place...

Cheeseburger and Taco Company purchases 5,702 boxes of cheese each year. It costs $27 to place and ship each order and $7.18 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is the annual ordering cost of cheese inventory. Round the answer to two decimals.

Cheeseburger and Taco Company purchases 19,000 boxes of cheese each year. It costs $21 to place...

Cheeseburger and Taco Company purchases 19,000 boxes of cheese each year. It costs $21 to place and ship each order and $3.16 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is the annual total inventory management costs of cheese inventory. Round the answer to two decimals.

Cheeseburger and Taco Company purchases 17,886 boxes of cheese each year.

Cheeseburger and Taco Company purchases 17,886 boxes of cheese each year. It costs $20 to place and ship each order and $6.76 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

Part A: Suppose Stanley's Office Supply purchases 90,000 boxes of pens every year. Ordering costs are...

Part A: Suppose Stanley's Office Supply purchases 90,000 boxes of pens every year. Ordering costs are $133.95 per order and carrying costs are $0.75 per box. Moreover, management has determined that the EOQ is 5,669.92 boxes. Note: The ordering costs and EOQ differ from problem 1. The vendor now offers a quantity discount of $0.06 per box if the company buys pens in order sizes of 10,000 boxes. Determine the before-tax benefit or loss of accepting the quantity discount. (Assume...

2. Suppose Stanley's Office Supply purchases 90,000 boxes of pens every year. Ordering costs are $133.95...

2. Suppose Stanley's Office Supply purchases 90,000 boxes of pens every year. Ordering costs are $133.95 per order and carrying costs are $0.75 per box. Moreover, management has determined that the EOQ is 5,669.92 boxes. Note: The ordering costs and EOQ differ from problem 1. The vendor now offers a quantity discount of $0.05 per box if the company buys pens in order sizes of 10,000 boxes. Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the...

Suppose Stanley's Office Supply purchases 90,000 boxes of pens every year. Ordering costs are $133.95 per...

Suppose Stanley's Office Supply purchases 90,000 boxes of pens every year. Ordering costs are $133.95 per order and carrying costs are $0.75 per box. Moreover, management has determined that the EOQ is 5,669.92 boxes. Note: The ordering costs and EOQ differ from problem 1. The vendor now offers a quantity discount of $0.02 per box if the company buys pens in order sizes of 10,000 boxes. Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the carrying...

2) Suppose Stanley's Office Supply purchases 70,000 boxes of pens every year. Ordering costs are $133.95...

2) Suppose Stanley's Office Supply purchases 70,000 boxes of pens every year. Ordering costs are $133.95 per order and carrying costs are $0.75 per box. Moreover, management has determined that the EOQ is 5,000.40 boxes. Note: The ordering costs and EOQ differ from problem 1. The vendor now offers a quantity discount of $0.03 per box if the company buys pens in order sizes of 10,000 boxes. Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the...

There is a small place that makes pizza produces three goods (bread, cheese, and pizza), each...

There is a small place that makes pizza produces three goods (bread, cheese, and pizza), each produced by a separate company. The bread and cheese companies produce all the inputs they need to make bread and cheese, respectively. The pizza company uses the bread and cheese from the other companies to make its pizzas. All three companies employ labour to help produce their goods, and the difference between the value of goods sold and the sum of labour and input...

Required: Identify each of the costs accordingly by placing an “X” in the appropriate boxes. Each...

Required: Identify each of the costs accordingly by placing an “X” in the appropriate boxes. Each cost can be classified multiple times. Please tell why for each. Thank you Product Period Variable Fixed Direct Material Direct Labor Manufacturing Overhead Oil to keep a factory machinery lubricated Aluminum used in the manufacturing of bicycles Fabric used in the manufacture of baseball jerseys Wages of sewing machine operators making baseball jerseys Janitorial supplies used in a factory’s restrooms The advertising manager’s salary...

Question