Louise Manufacturing uses 2,700 switch assemblies per week and then reorders ano

Question

Louise Manufacturing uses 2,700 switch assemblies per week and then reorders another 2,700. The relevant carrying cost per switch assembly is $11.00, and the fixed order cost is $1,350. What are the current carrying costs? (Do not round intermediate calculations.) Carrying costs $ What are the order costs? (Do not round intermediate calculations.) Order costs $ Calculate the economic order quantity. (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) EOQ

Explanation / Answer

carring cost = Average inventoryin period * carring cost per unit for the period

=(0+2700)/2)*11

= 14850

Order cost =1350

EOQ= SQRT(2*quantity*cost per order/carring cost per orer

= SQRT((2*2700*1350)/11)

= 814.08

* carring cost is $11 per unit per week

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.