Economic order quantity model

Assignment Help Finance Basics
Reference no: EM132576974

Appliance for Less is a local appliance store. It costs this store $24.88 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 757 units. Each order costs $77. The company is using Economic Order Quantity model in placing the orders.

It takes approximately 6 day(s) to receive an order after it has been placed. If the store insists on a 6 day(s) safety stock (assume 365-days a year), what should the inventory level be when a new order is placed? (Round the answer to the whole number)

Reference no: EM132576974

Questions Cloud

What is the book value of the truck at december : If 16,000 Kms are traveled in 2001 and 24,000 Kms are traveled in 2002, what is the book value of the truck at December 31, 2002?
What challenges do you face with working capital management : What challenges do you face with working capital management? How will you ensure your working capital is managed effectively and efficiently?
HI3042 Taxation Law Assignment Problem : HI3042 Taxation Law Assignment Help and Solution - Holmes Institute, Australia - Assessment Writing Service - Calculate the net income for the partnership
Outline three deductions of tax : Outline three deductions of tax that a business may not claim and explain why for each. Unit -fnsacc514(prepare financial report for cooperate entities)
Economic order quantity model : Appliance for Less is a local appliance store. It costs this store $24.88 per unit annually for storage, insurance, etc.,
Explain fair presentation and compliance with aas : Explain fair presentation and compliance with AAS as set out in the AASB101 Presentation of Financial Statements. Provide the suitable example.
Media and society : Demonstrate personal passion for your position and critical thinking with persuasive language, sound logic, valid claims, and credible support for the claims.
Explain how the corporations act defines : Explain how the Corporations Act 2001 defines a Pty Ltd company and requirements regarding the number of directors and members.
What would the real interest rate be : What would the real interest rate be if the nominal interest rate is 6.9% and the inflation rate is 2.0%?

Reviews

Write a Review

Finance Basics Questions & Answers

  How much income will result on schedule

Debbie is a 25% owner in McMotors Inc., an S corporation. McMotors Inc. had the following results from operations in 2016: Ordinary business income of $60,000.

  Determine one 1 significant benefit to an organization that

suggest one 1 key economic factor that motivates leasing as an option in acquiring an asset. explain the potential

  Primary types of retirement plans

The two primary types of retirement plans employed are defined benefit plans and defined contribution plans. Please explain the structure of each, how they are funded, and how they pay benefits to retirees.

  A furniture company produces 5 times as many beds on shift

a furniture company produces 5 times as many beds on shift two than on shift one. if a total of 240 beds were produced

  Suppose that baltimore machinery sold a drilling machine to

suppose that baltimore machinery sold a drilling machine to a swiss firm and gave the swiss client a choice of paying

  What was the average nominal risk-free rate

Assume large-company stocks returned 11.8 percent on average over the past 75 years. The risk premium on these stocks was 7.9 percent and the inflation rate was 3.2 percent. What was the average nominal risk-free rate of return for those 75 years?

  The standard deviation of returns on i

Hyacinth Macaw invests 54% of her funds in stock I and the balance in stock J. The standard deviation of returns on I is 15%, and on J it is 28%.

  How does current market rate of interest impact time value

How does the current market rate of interest impact time value of money calculations? How can this aspect alter your current spending, savings, and budgeting patterns?

  How should an insurance company incorporate insurance

how should an insurance company incorporate insurance contract acquisition costs in the fair value

  Depreciation methods would you recommend

Which of the following depreciation methods would you recommend: straight-line depreciation, double declining balance method, or an alternative method?

  Management of risk and returns

Three major concepts you learned in this course and explain how you will utilize them in your current or a future position.

  How does comment by senator feinstein relate to labor game

Several years ago, the Congress was debating whether to keep alive the B-2 Stealth .bomber program. The Department of Defense did not want to spend its money.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd