What is the annual cost of their current ordering policy

Assignment Help Biology
Reference no: EM132814242

SteelCase Furniture Company uses steel at a fairly steady rate of 50 tons per week. Assume there are 50 weeks per year. They purchase the steel from BainBridge Steel Company at a cost of $600 per ton. SteelCase estimates that there is a fixed cost (transportation, order processing, etc.) of $1500 for every order that they place with BainBridge and uses an annual carrying cost rate of 8%. Currently, they receive an order every four weeks.

1. What is the annual cost of their current ordering policy?

2. What is the order quantity that would minimize their annual cost?

3. Estimate the savings that SteelCase could realize by moving to the optimal policy.

Reference no: EM132814242

Questions Cloud

What would be the operating income if sales units increased : What would be the operating income if sales units increased by 10%? Mathers Company had sales of $20,000 (200 units at $100 per).
Prepare the journal entry to record the accrual of interest : Ivanhoe Company issued $445,000, 14%, 10-year bonds at face value. Prepare the journal entry to record the accrual of interest on December 31, 2020.
Journalize the adjusting entry at December : If Nixon uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31
What is the balance of accounts receivable at march : Percentage of sales basis to estimate bad debts expense and anticipates 1.5% of net sales to be uncollectible, what is the adjusting entry at March 31, 2020?
What is the annual cost of their current ordering policy : 1. What is the annual cost of their current ordering policy? 2. What is the order quantity that would minimize their annual cost?
What are your 2 strongest interpersonal skills : What are your 2 strongest interpersonal skills? What can you do to address those 2 limitations?
What cash remittance to consignor and the consignment profit : What cash remittance to consignor and the consignment profit are? On May 1, the Thailand products Company ships five (5) of its appliances to the Korea
Determining the impact on productivity : What will be the impact on productivity (measured in crates per labor -hour) if the buyers are hired?
Find what is difference of a biological asset from inventory : Find What is the difference of a biological asset from an inventory? Give at least 5 biological assets and identify their agricultural produce.

Reviews

Write a Review

Biology Questions & Answers

  Immune response to infectious disease

It is a very curcial concept to understand how the immune response is mounted against viruses, bacteria, protozoans and helminthes. For an effective immune response, both innate and adaptive immunity should work together.

  A review on advanced glycated end products (ages)

This Project report elaborates a critical review of important elements attached to Advanced Glycated End Products (AGEs). It is very crucial to understand the process called Millard reaction.

  Plastic as a soil stabilizer

Soil stabilization is the permanent physical and chemical alteration of soils to enhance their physical properties. Stabilization can increase the shear strength of a soil and control the shrink-swell properties.

  Principles of microbiology

This assignment has three parts which contains questions related to Microbiology. It contains basic principles of microscopy, staining techniques in microbiology and microbial growth in the food industry.

  List the biologic functions

Lipid metabolites are often seen as key elements in cellular signaling. Is this unique? Please provide several examples of the function of lipids as key elements in signal arrays and list the biologic functions these signals affect?

  Biologic function relationships

Please describe how one might search for chemical structure, biologic function relationships, involving small molecular weight lipophylic compounds. Provide one example.

  Case study on patient in the haematology laboratory

Write a case study which detailing a scenario of a patient being investigated in the Haematology laboratory.

  Use of pcr and genetic approaches in biotechnology

The use of PCR and genetic approaches in biotechnology

  Describe the role of this enzyme in honey

Glucose oxidase is an enzyme that can be used for measurements of glucose levels by combining this reaction with an oxygen probe.

  Genetic problems

What phenotypic ratio would you get if you crossed a white mouse and a heterozygous brown mouse?

  Prepare an essay on nosocomial infection

Prepare an essay on nosocomial infection.

  Monitoring and recording the blood pressure

To increase the awareness of monitoring and recording the blood pressure of patients and practice measuring blood pressure in a safe environment.

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