EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 18, Problem 21P
a)
Summary Introduction
To calculate: The placing time of the orders.
b)
Summary Introduction
To calculate: The average inventory and yearly carrying costs.
c)
Summary Introduction
To calculate: The reorder point.
d)
Summary Introduction
To calculate: The safety stock.
e)
Summary Introduction
To calculate: The average inventory and yearly carrying costs.
e)
Summary Introduction
To calculate: The reorder point.
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Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer. Green Trees plans on ordering t-shirts several times over the next year. The firm receives 2,500 t-shirts each time it orders. The carrying cost is $0.10 per shirt per year. The order cost is $500 per order. What is the annual ordering cost of the t-shirt inventory (rounded to the nearest dollar)?
A store sells a product that has the annual demand of 16,156 units. It purchases the product from
supplier A for
$74.4 per unit. The unit inventory carrying cost per year is 14 percent of the unit purchase cost.
The cost to
place and process an order from the supplier is $107 per order. Supplier A has a delivery lead time
of 7 days.
The store operates 300 days a year. Assume EOQ model is appropriate. What is the optimal total
annual
inventory and purchase cost for the store?
Use at least 4 decimal places.
Green Tees, an on line retailer of t-shirts, orders 10,000 t-shirts per year from its manufacturer. The carrying cost is $0.10 per shirt per year. The order cost is $550 per order. What is the optimal order quantity for the t-shirt inventory (rounded to the nearest dollar)?
Chapter 18 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Ch. 18 - Prob. 1QTDCh. 18 - Prob. 2QTDCh. 18 - Prob. 3QTDCh. 18 - Prob. 4QTDCh. 18 - Prob. 5QTDCh. 18 - Prob. 6QTDCh. 18 - Prob. 7QTDCh. 18 - Prob. 8QTDCh. 18 - Prob. 9QTDCh. 18 - Prob. 10QTD
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