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Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant by the year. These brackets are purchased from a supplier 100 miles away for $15 every, and the lead time is 2 days. The holding cost per bracket anually is $1.50 (or 10% of the unit cost) and the ordering cost per order is $18.75. There are 300 working days per year.
(a) What is the EOQ?
(b) Given the EOQ, what is the average inventory? What is the yearly inventory holding cost?
(c) In minimizing cost, how many orders would be made every year? What would be the annual ordering cost?
(d) Given the EOQ, what is the total annual inventory cost (having purchase cost)?
(e) What is the time between orders?
(f) What is the ROP?
Cost-Volume-Profit assumptions The main assumptions required in C-V-P analysis are: 1) The relationship holds merely within the appropriate range. The relevant range is a ba
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In the earlier unit, we have studied how firms determine their requirements for current assets and manage their holdings in cash and marketable securities. Inside a classical manuf
how to i get financial report for my company Anuz Wpp
Illustration: ABC analysis Combine items on the basis of their relative value to form three categories—A, B and C. The data in the table below illustrates the ABC analysis.
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Financial Accounting Which is concerned with the provision of information to external parties outside the organization? It is the procedure of measuring, classifying, summariz
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definition and illustrations
ABC Analysis (Pareto Analysis) In ordinary parlance, ABC analysis can be best compared with our class society where the population is categorized into Top, Middle and Lower cla
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