Evaluate the economic order quantity

Assignment Help Financial Accounting

Reference no: EM1312978

Find the reorder point.

Scrumptious Spices manufactures a special blend of beef marinade. The company buys one of the spices used in the marinade in 10-pound bags that cost $5 each. The company uses 50,000 of the bags per year, and usage occurs evenly throughout the year.The average cost to carry a 10-pound bag in inventory per year is $1. The cost to place an order is $12. Determine the economic order quantity for the spice in terms of 10 pound bags.
If the company works 250 days per year, on average how many bags of spice are used per working day?
If the lead time for an order is normally five working days, determine the reorder point.
If the company normally carries 50 bags as safety stock, determine the reorder point for the spice.

Reference no: EM1312978

Questions Cloud

Objective questions based on momentum and force : Objective questions based on momentum and force.

Production possibility frontier and opportunity cost : Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced.

Describe capital budgeting decision based net present value : Describe Capital budgeting decision based on net present value

Type error and power of a test : Would the null hypothesis be accepted or rejected in this case?

Evaluate the economic order quantity : Evaluate the economic order quantity for the spice in terms of 10 pound bags - Find the reorder point

Compute present value and the internal rate : Compute present value and the internal rate or return for the new product line - outlay for working capital will be recovered at the end of six year. Aunt Sally's tax rate is 34% and the firm requires 16% return.

Describe capital budgeting decision : Describe Capital budgeting decision based on net present value and Should the new machine be purchased

Find the forecast for robert''s year-end net income : The tax rate is expected to remain at 40 percent and On the basis of this information, what will be the forecast for Robert's year-end net income?

Mcq on mortgage loans and federal reserve bank : The nation is divided into __12______ Federal Reserve districts, each having a Federal Reserve Bank.

User Account

All Pages