Answer to Question #66021 in Economics of Enterprise for Hassan

Question #66021
A Company uses 2,500 units during the course of the year, and its usage is relatively constant throughout the year. These units are purchased from a supplier 100 kilometers away for Ksh.15 each, and the lead time is 2 days. The holding cost per unit per year is Ksh.1.50 (or 10% of unit cost) and the ordering cost per order is Ksh.18.75. There are 250 working days per year for this company.
a) What is EOQ?
b) Given the EOQ, what is the average inventory?
c) In minimizing cost, how many orders would be made each year? What would be the annual ordering cost?
d) Given the EOQ, what is the total annual inventory cost ( including purchase cost)
e) What is the time between orders?
f) What is the ROP(re-oder point)
1
Expert's answer
2017-03-08T09:03:05-0500
The answer to the question is available in the PDF file https://www.assignmentexpert.com/https://www.assignmentexpert.com/homework-answers/economics-answer-66021.pdf

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS