M Chapter 20 Graded Home x C ezto.mheducation.com/hm.tpx Chapter 20 Graded Homew

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M Chapter 20 Graded Home x C ezto.mheducation.com/hm.tpx Chapter 20 Graded Homework Question 6 (of 6) Value: 10.00 points The Trektronics store begins each week with 400 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $35 per year and the fixed order cost is $75 What are the current total carrying costs? (Do not round intermediate calculations.) Carrying costs What are the current restocking costs? (Do not round intermediate calculations.) Restocking costs What is the economic order quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16 EOQ Should Trektronics increase or decrease its order size? Increase Decrease How many orders per year will Tektronics place under the new policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Orders per year References eBook & Resources Learning objective: 20-04 Worksheet How to determine the costs of carrying inventory and the optimal inventory level Difficulty: Basic Section: 20.8 Inventory Management Techniques Check my work instructions l help Save & Exit Submit

Explanation / Answer

1)Current carrying cost = 1/2*number of phasers ordered per week *carrying cost per phaser = 400*35*.5 = 7000

2)Current restocking cost = reorder cost*weeks per year = 75*52 = 3900

3)EOQ Q = (2*S*F/H)^(0.5)

Q = order quantity in units H = holding cost per unit per year S = annual demand in units per year F = ordering cost per order

Q = (2*400*52*75/35)^(0.5)

Q = 298.57

4) number of orders = total demand/EOQ = 400*52/298.57 =69.67

412.13

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