A textile manufacturer has cloth that has a $14 per yard carrying cost per year. This cloth is used at a rate of
25,000 yards per year, and ordering costs are $10 per order.
a. What is the economic order quantity for this cloth?
b. What are the annual inventory costs for this firm if it orders in this quantity?
a. Q* = 2SO
C =
2(25,000)10
14 = 189 units
b. Total costs = (Q)
2 C + ( S ) Q O
=
(189)
2 $14 + (25,
You might also like to view...
How would positive cues be set up to encourage reading?
a. Place books next to favorite chair and download eBook to favorite device b. Download eBook to favorite device and remove smart phone from room c. Remove a smart phone from a room and place books next to favorite chair d. Place books next to favorite chair, remove smart phone from room, and download eBook to favorite device
When communications accurately describe what service quality is provided and can be expected, and consumers are still less than satisfied with the service, there is a gap between ________
A) consumer expectations and management perceptions B) management perceptions and quality standards set by the firm C) expected services and actual services D) expected services and needed services E) service quality standards and consumer expectations
The primary function of collateral is to secure payment of the loan
Indicate whether the statement is true or false
Environmental ________ are the laws designed to protect the natural environment against undue harm by individuals and organizations.
Fill in the blank(s) with the appropriate word(s).