Calculate the economic order quantity

Assignment Help Financial Management

Reference no: EM132021921

Taizhou Products uses 800 units of a product per year on a continuous basis. The product has carrying costs of $50 per unit per year and order costs of $300 per order.

It takes 30 days to receive a shipment after an order is placed and the firm requires a safety stock of 5 days usage in inventory.

(A) Calculate the economic order quantity (EOQ).

(B) Determine the reorder point. (Assume a 360 day year)

Reference no: EM132021921

Questions Cloud

What factors do the rating agencies consider in analyzing : What does it take if possible for an asset backed security with an A rating to get to AAA?

What is the amount of each loan payment : You are paying $750 down in cash and financing the balance for 42 months at 8.45 percent. What is the amount of each loan payment?

What is your net profit on the option if ibms stock price : You have taken a long position in a call option on IBM common stock. The option has an exercise price of $139 and IBM's stock currently trades at $145.

What is juanita irr on investment : Juanita has an opportunity to invest in her friend's clothing store. The initial investment is $10,200 and the expected annual cashflows thereafter

Calculate the economic order quantity : It takes 30 days to receive a shipment after an order is placed and the firm requires a safety stock of 5 days usage in inventory.

Calculate economic depreciation and book depreciation : Calculate economic depreciation, book depreciation, economic return, and book return for each year of the plane's life.

What should the futures price be : The futures contract matures in six months. The risk-free rate is 7% per year. What should the futures price be?

How much will james have saved : If the account earns 10% per year, how much will James have saved at age 65.

What is its irr and will this purchase maximize shareholders : This purchase is expected to increase Tabletop's cash flow by $62,000 through reduced fuel and maintenance expenses for the next eight (8) years.

User Account

All Pages