Compute economics production quantity and maximum inventory

Reference no: EM131765059

Lenovo uses 450,000 hard disks per year to mount in their laptops. The manufacturer receives the hard disks from a supplier at a rate of 1800 per day. Carrying cost per hard disk is $2/year and setup cost for a production run is $450. The plant operates 250 days per year.

Compute the economics production quantity.

Compute the maximum inventory

show all calculations

Reference no: EM131765059

Questions Cloud

What would the market price be for the bond : If the market rate of interest for this bond moves to 3% exactly one year after issue, what would the market price be for the bond?

Equity used is from reinvested earnings : What is the company's WACC (in percent) if all the equity used is from reinvested earnings?

Prepare a one-page description of your plan to solve problem : Prepare a one-page description of your plans to solve the problem for one of the following research studies. Use the given headings for the problem.

Million of fixed assets : Boba-Phet Inc. had $240 million of sales last year, and it had $100 million of fixed assets that were being operated at 61% of capacity

Compute economics production quantity and maximum inventory : Compute the economics production quantity. Compute the maximum inventory.

Determine return on equity : The coupon rate on mortgage is 7% and the mortgage matures in 30 years at which you think you can sell your home for $2.7million.

Discuss the edge and saves the equipment : Their unique tungsten carbide process hardens the edge and saves the equipment from abrasion and wear

Reed machinery balance sheet : Reed Machinery just signed a capital lease agreement with a present value of $130,000. How would this lease first appear on Reed Machinery's balance sheet?

Compensate the lessor for inflation : ABC company leased a food cooler under a 4 year lease agreement. The lease begins on January 1, YR 01, with rental payments due at the start of each rental.

User Account

All Pages