Wheel bearings should itex order from wheel-rite at one time

Assignment Help Financial Management

Reference no: EM131999678

Jim Overstreet, inventory control manager for Itex, receives wheel bearings from Wheel-Rite, a small producer of metal parts. Unfortunately, Wheel-Rite can only produce 500 wheel bearings per day. Itex receives 10,000 wheel bearings from Wheel-Rite each year. Since Itex operates 200 working days each year, its average daily demand for wheel bearings is 50. The ordering cost for Itex is $40 per order, and the carrying cost is 60 cents per wheel bearing per year. How many wheel bearings should Itex order from Wheel-Rite at one time? Wheel-Rite has agreed to ship the maximum number of wheel bearings that it produces each day to Itex when an order has been received.

Reference no: EM131999678

Questions Cloud

Materialize and become issues : The risks that are identified at the beginning of a project may not be the same as those that actually materialize and become issues as the project progresses.

Number of security breaches increasing : With the number of Security Breaches increasing, and networks being exposed to constant surveillance and attacks

Provide a summary of the applicants personal history : The psychologist must personally interview the applicant and provide a summary of the applicant's personal, educational, employment, and criminal history.

How the revenue should be recognized : The membership fees are due in the beginning of the year and are collected in advance. They have 4 clubs in the vicinity, and the members can use.

Wheel bearings should itex order from wheel-rite at one time : How many wheel bearings should Itex order from Wheel-Rite at one time?

Degree of coordination between the members : Case management requires a high degree of coordination between the members of the case management team.

What is the accounting break-even level of sales : What is the accounting break-even level of sales in terms of number of diamonds sold?

Purchasing decisions for seasonal fashions : Imagine that you are the team leader of a group of buyers who are about to make purchasing decisions for seasonal fashions

Accounting break-even level of sales if firm pays no taxes : What is the accounting break-even level of sales if the firm pays no taxes? What is the NPV break-even level of sales if the firm’s tax rate is 35%?

User Account

All Pages