Annual demand 144495 units Carrying costs $3.36 per unit Fixed Costs per order $7.8 Number of...

Annual demand 144495 units Carrying costs $3.36 per unit Fixed Costs per order $7.8 Number of orders 38 What are the total costs?

Solutions

Expert Solution

Total Cost = Total Carrying Cost + Total Fixed Cost

= ( Annual Demand * Carrying Cost Per Unit) + (Fixed Cost Per Order * Number of orders)

= ( 144495Units * $ 3.36 Per Unit) + ( $ 7.8 Per Order * 38 Orders)

= $ 485,799.60

Hence the correct answer is $ 485,799.60

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Annual demand is 12500 units, cost per order is $60 and carrying cost per unit as...

Annual demand is 12500 units, cost per order is $60 and carrying cost per unit as a percentage is 8%. The company works 50 weeks a year; the lead-time on all orders placed is 5 weeks. Assuming constant lead-time demand, and a unit cost of $40 what is the economic order quantity? What is the reorder point. If lead-time demand shows variability that follows a normal distribution with a mean μ =280 and a standard deviation σ =20, what will...

FQ3. Annual demand is 12500 units, cost per order is $60 and carrying cost per unit...

FQ3. Annual demand is 12500 units, cost per order is $60 and carrying cost per unit as a percentage is 8%. The company works 50 weeks a year; the lead-time on all orders placed is 5 weeks. Assuming constant lead-time demand, and a unit cost of $40 what is the economic order quantity? What is the reorder point. If lead-time demand shows variability that follows a normal distribution with a mean μ =280 and a standard deviation σ =20, what...

If EOQ = 360 units, order costs are $5 per order, and carrying costs are $0.20...

If EOQ = 360 units, order costs are $5 per order, and carrying costs are $0.20 per unit, what is the usage in units? How many orders will be placed in a year if there are 250 working days per year and lead time is 5 days?

Assume: Demand = 3000 units/year Inventory value = $60/unit Order placement cost = $400/order Annual carrying...

Assume: Demand = 3000 units/year Inventory value = $60/unit Order placement cost = $400/order Annual carrying costs = $0.30 per dollar held/yr or “30%” If you supplier calls with a special 1X discount of 10%, what would the savings be?

Demand for an item is 18644 units per year. Each order placed costs $94. The annual carrying cost percentage per item in inventory is 20 percent each.

Demand for an item is 18644 units per year. Each order placed costs $94. The annual carrying cost percentage per item in inventory is 20 percent each. The variable purchase cost is $2.5 per unit if less than 3000units will be ordered, $ 2.4 from 3000 units up to (but not including) 4000 units, and $2.3 for at least 4000 units. These are all-units discounts.(A) What is the optimal order quantity Q* for the unit cost of $2.3? Please round...

Demand for an item is 1,000 units per year. Each order placed costs $10, the annual...

Demand for an item is 1,000 units per year. Each order placed costs $10, the annual cost to carry items in inventory is $2 each. Suppose the lead time is 6 days. Assume sales occur over 360 days of the year. In what quantities should the item be ordered based on the EOQ model? (2 points) What is the reordering point? (2 points) Explain the inventory management policy. (1 point)

Fixed costs are $3,000, variable costs are $5 per unit. The company will manufacture 100 units...

Fixed costs are $3,000, variable costs are $5 per unit. The company will manufacture 100 units and chart a 50% markup. Using the cost-plus pricing method, what will the selling price be?

Assume you have a product with the following parameters: Annual Demand = 360 units Holding cost per year = $1.00 per unit Order cost = $100 per order

Assume you have a product with the following parameters: Annual Demand = 360 units Holding cost per year = $1.00 per unit Order cost = $100 per order a) What is the EOQ for this product?b) In addition, assume a 300-day work year, how many orders should be processed per year? c) What is the expected time between orders?

Plymouth Corp. sells units for $100 each. Variable costs are $75 per unit, and fixed costs...

Plymouth Corp. sells units for $100 each. Variable costs are $75 per unit, and fixed costs are $200,000. If Plymouth leases a new machine, fixed costs will increase by $60,000 a year, but production will be more efficient, saving $5 per unit. At what level of production will Plymouth be indifferent between leasing and not leasing the new machine?

New Berlin Corporation has annual fixed costs of $800,000, variable costs of $48 per unit, and...

New Berlin Corporation has annual fixed costs of $800,000, variable costs of $48 per unit, and a contribution margin ratio of 40 percent. a. Compute the unit sales price and unit contribution margin for the above product. b. Compute the sales volume in units required for New Berlin Corporation to earn an operating income of $600,000. c. Compute the dollar sales volume required for New Berlin Corporation to earn an operating income of $600,000.

Subjects