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 cost remains at $0.75 per box whether or not the discount is taken.)

Use the data from problem 2 and a 365 day year. If the lead time for placing an order is 14 days, and Stanley's Office Supply holds a Safety Stock of 30 days Supply of Boxes of Pens, then at what inventory level in Boxes should an order be placed? Enter your answer rounded to two decimal places. For example, if your answer is 123.45% or 1.2345 then enter as 1.23 in the answer box.

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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...

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...

Suppose Big Box Office Supply (BBOS) purchases 100,000 office chairs every year. Ordering costs are $95.00...

Suppose Big Box Office Supply (BBOS) purchases 100,000 office chairs every year. Ordering costs are $95.00 per order and carrying costs are $4.95 per chair. What is BBOS’s total inventory cost per year, including both carrying costs and ordering costs, if BBOS orders the EOQ of office chairs? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer...

13. Suppose Big Box Office Supply (BBOS) purchases 100,000 office chairs every year. Ordering costs are...

13. Suppose Big Box Office Supply (BBOS) purchases 100,000 office chairs every year. Ordering costs are $95.00 per order and carrying costs are $4.25 per chair. What is BBOS’s total inventory cost per year, including both carrying costs and ordering costs, if BBOS orders the EOQ of office chairs? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the...

Suppose Big Box Office Supply (BBOS) purchases 100,000 office chairs every year. Ordering costs are $95.00...

Suppose Big Box Office Supply (BBOS) purchases 100,000 office chairs every year. Ordering costs are $95.00 per order and carrying costs are $5.75 per chair. What is BBOS’s total inventory cost per year, including both carrying costs and ordering costs, if BBOS orders the EOQ of office chairs? Enter your answer rounded to two decimal places.

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 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

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

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Related Solutions

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