Calculate economic ordering quantity

Assignment Help Financial Management

Reference no: EM131891749

Tom’s Gift Shop is experiencing some inventory control problems. Tom currently orders 5,000 units 5 times each year to handle annual demand of 25,000 units. Each order costs $15 and each unit costs $1.00 to carry. Tom maintains a safety stock of 200 units.

(a) What is Tom’s Gifts' current total annual inventory cost?

(b) Calculate the economic ordering quantity (EOQ).

(d) Calculate total annual inventory cost under EOQ.

Reference no: EM131891749

Questions Cloud

How much soybeans must us-mexico give up : Please complete the following opportunity cost table. (Hint: In order to produce one unit of Soybeans how many Avocados must U.S.

Responsible for determining how the economy : Please explain the factors that determine wages which are largely responsible for determining how the economy's total income is distributed

Iterated elimintation of weakly dominated strategy : Prove that s = 0 is surviving IEWDS (iterated elimintation of weakly dominated strategy. please display through proper mathematical proof (counter example?)

Possible ranges for price elasticity of demand : " Do you agree or disagree? Explain. Explain the three possible ranges for price elasticity of demand.

Calculate economic ordering quantity : What is Tom’s Gifts' current total annual inventory cost? Calculate the economic ordering quantity (EOQ).

What type of quality measures can the organizations evaluate : Conduct a search of literature or online resources to find quality measures used in settings other than acute care facilities.

Efficient equilibrium prices and quantities exchanged : Using graphical analysis, show why market forces in these two markets will not achieve efficient equilibrium prices and quantities exchanged in the market.

Develop a research question or purpose of the study : Design a descriptive study to investigate if better meal options will increase patient satisfaction.

Centralize all data to the corporate data center : Which software requirement model would be most beneficial for a chain of 20 restaurants with the following requirements:

User Account

All Pages