What is the average inventory if they order at their EOKrewe quantity?
The Krewe of Orpheus maintains a supply of swizzle sticks for events throughout the year. Demand for swizzle sticks is shockingly low, a quick check of krewe records from last year reveals that they used only 585,000, but the krewe president believes that they should be good stewards of what they have, so they seek to manage this inventory using the EOQ policy, although they prefer to refer to it as an EOKrewe policy for obvious reasons. Swizzle sticks are not expensive items, they cost a nickel apiece largely due to the club logo printed on each one. This also serves to increase the lead time as they can't be obtained from a standard restaurant supply house. Instead, they must be ordered with an eye towards the six day lead time. It costs $15 to place an order, most of this cost is a result of explaining the meaning of "Laissez les bons temps rouler" and why it should be printed on the edge of each swizzle stick. Holding cost is 20% of purchase price.
A) 41892
B) 20946
C) 18374
D) 9187
Answer: B
You might also like to view...
Attitudes are learned or at least influenced by ________.
A. customer touch points B. new information C. motivation D. behavioral segmentation E. formalization
The CAN-SPAM Act does not regulate spam sent to Americans from other countries
Indicate whether the statement is true or false
Modified whole life is ideal for those individuals who need greater death protection in old age
Indicate whether the statement is true or false.
The point system of job evaluation permits jobs to be evaluated quantitatively based on compensable factors.
Answer the following statement true (T) or false (F)