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Lesechka [4]
1 year ago
15

The Talbot Company uses electrical assemblies to produce an array of small appliances. One of the​ assemblies, the XOminus​01, h

as an estimated annual demand of 12 comma 000 units. The cost to place an order for these assemblies is ​$650​, and the holding cost for each assembly unit is approximately ​$30 per year. The company has 260 workdays per year.
Required:
What are the annual inventory holding costs if Talbot orders using the EOQ​ quantity?
Business
1 answer:
Molodets [167]1 year ago
5 0

Answer:

$1,975 per year

Explanation:

The first step is to calculate Economic order quantity using the following formula:

Economic Order Quantity = √2DO / H  

Here

A is Annual Demand which is 12,000 Units.

O is Ordering Cost per order $650 per order.

H is Holding or Carrying Cost per unit per year is $30 per unit per year.

By putting values, we have:

Economic Order Quantity = √(2 * 12,000 * $650) / 30 = 131.66 units

Now annual inventory holding costs can be calculated using the following formula:

Inventory Holding Cost = Average Inventory * Holding Cost

Here,

Average Inventory = EOQ /2 = 131.66 / 2 = 66 units  

By putting values we have:

Annual Inventory Holding Cost = 66 * 20 = $1,975 per year

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2 years ago
Compute the respective net cash flows and cumulative cash balances for the months indicated on the following cash budget for six
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Answer:

Cumulative cash flow - $420

Net cash flow

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Feb= $150

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June -0

Explanation:

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2 years ago
With respect to organizational changes, a health care organization that discovered weaknesses in the organization’s ability to c
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Answer:

The correct answer is "Process change "

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Mark responds to Brianna’s concerns about the new employee end of shift policy with ""… This is a policy straight from corporate
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It is least effective for the aspects pertaining to pressure, legitimating

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Y_Kistochka [10]

Answer:

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