Response:
A) 100
Clarification:
total sales 3,600 units
cost per unit $200
order placement cost $40
holding cost is $20 annually
working days 360 yearly
lead time is 5 days
Should Mark purchase 200 units per order, what would his average stock be?
daily sales = total sales / working days = 3,600 / 360 = 10 units daily
orders each year = 3,600 / 200 = 18
Mark's order frequency = 360 days / 18 orders = 20 days
average inventory = (200 units / 20 days) x 10 days = 100
I presume Mark has some safety inventory to ensure he can cover the 5-day lead time.
Answer:
Total cost = Sum of ordering costs + Sum of holding costs
Total cost = DCo + QH
Q 2
Where
D = Annual demand
Co = Cost of ordering per order
Q = EOQ
H = Cost of holding per item annually
D = 40,000 units
Co = $48
H = 18% x $8.00 = $1.44
EOQ = √(2DCo)/H
EOQ = √(2 x 40,000 x $48)/$1.44
EOQ = 1,633 units
Explanation:
EOQ is derived by multiplying two times the annual demand and ordering cost, which is divided by holding cost per item on an annual basis. The annual holding cost is determined as the product of the holding rate and unit cost.
The total cost amounts to $8,817. The expense formula for Sherburne Snow Removal's vehicle is a $2,510 monthly base charge along with an additional $371 for each snowfall day. The actual activity level was 17 snow days. The flexible budget will adjust the standard costs to reflect actual utilization. The calculated fixed costs total $2,510, and the variable costs, multiplied by the number of snow days, amount to $6,307, combining for a total of $8,817.
Answer:
The primary role of Exotic Craft's marketing division is to guarantee that the company's products are delivered to content customers.
Explanation:
The marketing division holds a crucial dual responsibility; it must ensure customer satisfaction and simultaneously work towards increasing overall sales and market share. The marketing department acts as the public face of the company and strives to represent it in the most favorable light.
