Determine the economic order quantity of dints

Assignment Help Finance Basics

Reference no: EM131041543

The Hedge Corporation manufactures only one product: planks. The single raw material used in making planks is the dint. For each plank manufactured, 12 dints are required. Assume that the company manufactures 150,000 planks per year, that demand for planks is perfectly steady throughout the year, that it costs $200 each time dints are ordered, and that carrying costs are $8 per dint per year.

a. Determine the economic order quantity of dints.

b. What are total inventory costs for Hedge (total carrying costs plus total ordering costs)?

c. How many times per year would inventory be ordered?

Reference no: EM131041543

Questions Cloud

Explain nora reasons for leaving her home and family : Discuss how the Younger's enivrionment impacts their lives. Even though Walter Sr never appears in the play, he is an important character. Discuss his significance.

Operating cash flow in this transaction : A company bought $50,000 of inventory for $20,000 cash, with the balance due to the supplier in 30 days. What is the operating cash flow in this transaction?

Determining the multistage ddm : Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2.00, a dividend in year 2 of $3.00, and a dividend in year 3 of $4.00. After year 3, dividends are expected to grow at the rate of 7% per year. An appropriate required retur..

Two types of accounts receivable systems : All of the following statements are true, except: 1) The two types of accounts receivable systems discussed in the text are the balance-forward and open-item systems.

Determine the economic order quantity of dints : The Hedge Corporation manufactures only one product: planks. The single raw material used in making planks is the dint. For each plank manufactured, 12 dints are required.

Concerns of the charity one parent families : Apply the managerial perspective of Stakeholder Theory to explain whether management would care about the concerns of the charity One Parent Families.

Calculations of the ratios that is material to the analysis : Write a summary paragraph that outlines the findings evident from the ratios and notes any particular adjustments made in the calculations of the ratios that is material to the analysis.

Corporate tax shield on the dividends paid : Preferred Stock Preferred stock doesn't offer a corporate tax shield on the dividends paid. Why do we still observe some firms issuing preferred stock?

Business model innovation : Business Model Innovation- list the key ideas you have extracted from the prescribed e-learning activity

User Account

All Pages