"If Annual Demand Is 24 000 Units Orders Are Placed Every 0 5 Months And The Cost To Place An Order Is 50 What Is The Annual Ordering Cost" Essays and Research Papers

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If Annual Demand Is 24 000 Units Orders Are Placed Every 0 5 Months And The Cost To Place An Order Is 50 What Is The Annual Ordering Cost

Context_______________________ Mabuhay Company Incorporated owns 50 grocery outlets scattered around the metro but has only one main warehouse where all the goods are stored prior to delivery. The current inventory policy of the company had been practiced for the past 15 years. It mandates the monthly reorder of stocks by the main warehouse, and charging the branches with the delivery cost and a 3% financing charge per month on their inventory costs. The latter policy serves as the warehouse’s control system...

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Costs and Location

staples a year. The boxes cost $4 each. It costs $10 to order staples, and carrying costs are $0.80 per box on an annual basis. Determine: (A) the order quantity that will minimize the sum of ordering and holding boxes of staples (B) the annual cost of ordering and carrying the boxes of staples  2. . A service garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on an annual basis. Determine: (A)...

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Economic Order Quantity

-03 2. Introduction -03 3. Objective of study -06 4. Research Methodology -06 5. Analysis and interpretation of data -07-13 6. Conclusion -13 7. References -15 EXECUTIVE SUMMARY Inventory management...

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Cost Accounting Tutorial Chapter 2 (Diploma)

obtain from an outside supplier. Each delivery of material X consists of 30,000 kg at a cost of RM5 per kg. The cost of ordering is RM10 per order. The lead time for delivery can vary between 12 and 18 days and the rate of usage of material X also varies between 320 and 480 kg per day. Stockholding cost amount to 9% per annum of the average stockholding value. Required: Calculate the following: |Re-order level in kg | ...

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Economic Order Quantity: Practice Exercise

Economic Order Quantity - PRACTICE EXERCISE SCM 300 Below are some the key figures important in your analysis: Annual Per Unit Holding Costs are estimated at 30% of the wholesale cost. D = 13000 H = $60.00 C = $200.00 S = $400.00 Using Present Lot Size (Q = 1100) Calculate the time between orders? Do Not Round. 4.40 weeks How many orders per year are being placed annually? Do Not Round. 11.8 Orders per year According to the information supplied...

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Annual cost

Analysis The annual maintenance coast of machine shop is P 69,994. If the cost of making a forging is P 56 per unit and its selling price is P 135 per forged unit, find the number of unit to be forged to break-even. Solution: Let: x = number of units to be forged to break-even Income = 135x Expenses = 69,994 + 56x To break-even: Income = Expenses 135x = 69,994 + 56x 79x =69,994 x = 886 units Steel drum manufacturer incurs a yearly fixed operating cost of $ 200...

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Economic Order Quantity

The Economic Order Quantity (EOQ) is the number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and shortage costs. The EOQ is used as part of a continuous review inventory system, in which the level of inventory is monitored at all times, and a fixed quantity is ordered each time the inventory level reaches a specific reorder point. The EOQ provides a model for calculating the appropriate reorder point and...

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Costs and Opportunity Cost

Ronald Coase noted,“The cost of doing anything consists of the receipts that could have been obtained if that particular decision had not been taken.” For example, the opportunity set for this Friday night includes the movies, a concert, staying home and studying, staying home and watching television, inviting friends over, and so forth. The opportunity cost of taking job A included the forgone salary of $102,000 plus the $5,000 of intangibles from job B. Opportunity cost is the sacrifice of...

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Economic Order Quantity (EOQ)

Economic Order Quantity EOQ, or Economic Order Quantity, is defined as the optimal quantity of orders that minimizes total variable costs required to order and hold inventory. Every company worries about two things when deciding how to manage their inventory. How much should we order? And how often should we order? These represent variables that come with their own changing costs. The Economic Order Quantity, or EOQ, is that magic number that represents the optimal quantity of orders that minimizes...

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cost accounting 2

1/ Variable Costs: The variable cost will be 40% higher [ an increase of 21,000 - 15,000=6,000 units] Direct Material used 1,060,000 Variable Costs: Direct Labor 1,904,000 Direct material used [ 1,060,000 *1.4] 1,484,000 Unit costs [ 6,335,600 / 21,000] =$ 301.7 Indirect Materials and supplies 247,000 Direct Labor [ 1,904,000 * 1.4] 2,665,600 Variable Cost/ Unit = 228.27 at both 15k & 21k units Power to run plant eqip 213,000 Indirect Materials...

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