Total annual inventory cost , Managerial Accounting

Assignment Help:

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?

 

 

 

 


Related Discussions:- Total annual inventory cost

Explain programmer budgeting according to burkhead, Explain Programmer budg...

Explain Programmer budgeting According to burkhead According to burkhead a program budget serves a different purpose than performance budget. A performance budget is useful fo

Managerial decision, Explain the practical application of differential cost...

Explain the practical application of differential costing with examples

Explain support activities and production process activity, Explain Support...

Explain Support activitiesand production process activity Support activities are for example schedule production set up machine purchase materials inspect item customer orde

FIFO, I WANT TO KNOW THE RULES FOR DOING LIFO AND FIFO

I WANT TO KNOW THE RULES FOR DOING LIFO AND FIFO

Adjusted profit and loss method, Under this method, approximated profit is ...

Under this method, approximated profit is calculated depends on transactions of the ensuing period. Afterward, decrease or increase in working capital is determined adjusting the e

What are the categories of zero base budgeting, Categories of zero base bud...

Categories of zero base budgeting The preceding discussion will reveal that zero base budgeting is based primarily on: 1) Development of decision units 2) Identification

State the price determination under the market condition, State the price d...

State the price determination under the market condition The price determination under the following market condition is as follows: 1) Pure competition: in this situation

Explain the terms - cost object and activities, Explain the terms - Cost ob...

Explain the terms - Cost object and Activities Cost object : it is an item for which cost measurement is required for example a product or a customer. Activities: these c

Cost analysis purposes, Cost Analysis purposes For purposes of cost ana...

Cost Analysis purposes For purposes of cost analysis, the desegregation of the generic value chain into individual value activities should reflect three principles that are not

Explain out of pocket cost, Explain Out of pocket cost A cost which wil...

Explain Out of pocket cost A cost which will have to be paid to outsides as against cross such as depreciation, which do not require any cash payment this cost is relevant in t

Write Your Message!

Captcha
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