Question

In: Accounting

Question No.1    An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics....

Question No.1   

An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The

annual demand is approximately 1500 batteries. The supplier pays 25 R.O for each battery

and estimates that the annual holding cost is 30% of the battery's value. It costs

approximately 30 R.O to place an order. The supplier currently orders 125 batteries per

month.

a. Determine the EOQ.

b. How many orders will be placed per year using the EOQ?

c. Determine the total cost for the current order quantity.

d. Determine the total inventory cost for the EOQ, How has ordering cost changed?

Question No2:   

Find EOQ if annual demand is 5500 cases of Coco cola and fixed ordering cost is 15 R.O per

order and purchase cost is 3 R.O per case and holding cost is 25% of value of inventory per year.

please ,give answer clearly Today

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Question No.1    An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics....
Question No.1    An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1500 batteries. The supplier pays 25 R.O for each battery and estimates that the annual holding cost is 30% of the battery's value. It costs approximately 30 R.O to place an order. The supplier currently orders 125 batteries per month. a. Determine the EOQ. b. How many orders will be placed per year using the EOQ? c. Determine the...
A manufacturing company makes auto parts and sells them to auto dealers.
 A manufacturing company makes auto parts and sells them to auto dealers. Last week the company shipped 25 auto parts to a dealer. Later it found out that 5 of those parts were defective. By the time the company manager contacted the dealer 4 auto parts from that shipment had already been sold. What is the probability that 3 of those 4 parts were non-defective?
Lou supplier sells High quality-brand batteries to fishing supplies. The annual demand is approximately 1,200 batteries....
Lou supplier sells High quality-brand batteries to fishing supplies. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery’s value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. Determine the ordering, holding, and total inventory costs for the current order quantity. Determine the economic order quantity (EOQ). How many orders will...
In the service department of the NAPA (National Auto Parts Association), mechanics requiring parts for auto...
In the service department of the NAPA (National Auto Parts Association), mechanics requiring parts for auto repair or service present their request forms at the parts department counter. The parts clerk fills a request while the mechanic waits. Mechanics arrive in a random (Poisson) fashion at the rate of 60 per hour, and a clerk can fill requests at the rate of 20 per hour (exponential). If the cost for a parts clerk is $20 per hour and the cost...
O’Reilly Auto Parts sells parts to Rick’s Car Repair with a rebate of 2% on purchases...
O’Reilly Auto Parts sells parts to Rick’s Car Repair with a rebate of 2% on purchases up to $60,000 and 3% on purchases above $60,000 if Rick’s purchases for the year exceed $200,000. In the past, Rick’s normally purchases $300,000 in parts during a calendar year. On January 1, 2018, Rick’s purchased $74,000 of parts. The journal entry by O’Reilly to record the sale includes a a. debit to Accounts Receivable for $74,000. b. credit to Sales Revenue for $72,380....
The manufacturer of a certain brand of auto batteries claims that the mean life of these...
The manufacturer of a certain brand of auto batteries claims that the mean life of these batteries is 45 months. A consumer protection agency that wants to check this claim took a random sample of 24 such batteries and found that the mean life for this sample is 43.15 months. The lives of all such batteries have a normal distribution with the population standard deviation of 4.5 months. Find the p-value for the test of hypothesis with the alternative hypothesis...
Emirates Top Auto Parts (ETAP) is an independent auto parts dealer that sells auto parts and...
Emirates Top Auto Parts (ETAP) is an independent auto parts dealer that sells auto parts and delivers parts and tools to mechanic shops around the city. Identify possible actors and use cases involved in ETAP’s business functions. Create a use case diagram for ETAP’s operations. For the use case where the customer buys parts, complete a use case description table For the use case where the customer buys parts, create a class diagram. For the use case where the customer...
A NAPA auto parts supplier wants information about how long car owners plan to keep their...
A NAPA auto parts supplier wants information about how long car owners plan to keep their cars. a simple random sample of 31 car owners results in a mean of 7.01 years and a standard deviation of 3.74 years, respectively. Assume the sample is drawn from a normally distributed population. a) Find a 95%confidence interval estimate of the mean. b) Find a 95% confidence interval estimate of the population standard deviation. c) If several years pass and you want to...
UML Diagrams Osceola Auto Parts Osceola Auto Parts is an independent auto parts dealer that sells...
UML Diagrams Osceola Auto Parts Osceola Auto Parts is an independent auto parts dealer that sells auto parts, runs tests on customers’ cars,and delivers parts and tools to mechanic shops around town. Tasks 1. Identify possible actors and use cases involved in Osceola’s business functions. 2. Using dia, create a use case diagram for Osceola’s operations. 3. Select one of the use cases and create a class diagram. 4. Using dia, create a sequence diagram for the use case you...
Tudor brand car batteries are sold with the claim that they will last for at least...
Tudor brand car batteries are sold with the claim that they will last for at least 4 years. Weibang, having boosted his car (with a 3.5-year-old Tudor battery) many times this past winter, believes that the mean battery life is less than four years. A random sample of eight batteries was taken. The batteries were operational for the following time periods (months): 40, 41, 52, 48, 44, 47, 45, 43. (s =3.9 months). At the 5% significance level, can Weibang...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT