1.5 Calculate the annual economic order quantity (EOQ) from the information provided below. INFORMATION Sasco Traders expects to sell approximately 1 000 boxes of cereal per month during 2022. The cost of placing an order for cereal is estimated to be R25 and the unit purchase price is R24. The inventory holding cost is 10% of the unit purchase price.
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- Calculate the annual economic order quantity (EOQ) from the information provided below. INFORMATION Sasco Traders expects to sell approximately 1 000 boxes of cereal per month during 2022. The cost of placing an order for cereal is estimated to be R25 and the unit purchase price is R24. The inventory holding cost is 10% of the unit purchase price.The annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item has a value of P5,000. Ordering cost is P50.00. Carrying cost is 20% of average inventory. Find the following: a. Optimal number of order per year b. Economic order quantity c. Annual carrying cost d. Annual Ordering cost e. Total annual inventory costA company stocks an item that is consumed at the rate of 50 units per day. It costs the company P20 each time an order is placed. An inventory unit held for a week will cost P0.35. (a) Determine the optimum inventory policy assuming a lead time of 1 week. (b) Determine the optimum number of orders per year (365 days a year).
- What is the average age of inventory for Patsy if it has sales of P320,000, an average inventory of P5,333, and cash conversion cycle of 20 days ? Assume that the cost of sales is 55% of Sales.The following inventory date have been established for Warriors Company: Order must be placed in multiples of 100 Annual sales are 338,000 units The purchase price per unit is P6 Carrying cost is 20% of the purchase price of the goods Fixed order costs is P48 Three days are required for delivery. What is the EOQ? How many orders should Warriors placed each year? How many units must be order every time? Calculate the total cost of ordering and carrying cost if the order quantity is 4,000 units 4,800 units 6,000 units At EOQ Thank you so much!The annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item has a value of P5,000. Ordering cost is P50.00. Carrying cost is 20% of average inventory. a. Optimal number of order per year b. Economic order quantity c. Annual carrying cost d. Annual Ordering cost e. Total annual inventory cost
- A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%.Calculate the following:a. The EOQ in dollars.b. Number of orders per year.c. Cost of ordering, cost of carrying inventory, and total cost.d. How do the costs of carrying inventory compare with the costs of ordering?A retailer anticipates selling 4,050 units of its product at a uniform rate over the next year Each time the retailer places an order for a units, it is charged a flat fee of $75 Carrying costs are $27 per unit per year. How many times should the retailer reorder each vear and what should be the lot size to minimıze inventory costs? What 1s the minimum inventory cost? They should order units times a year. The minimum inventory cost is $ Get Help: Video eBookUse the information provided below to calculate the economic order quantity (expressed to the next whole number). INFORMATION Savoy Traders intends purchasing 19 200 watches at R80 each in the next year. The watches will be sold for R120 each at a steady rate during the year. The cost of placing a single order for the watches amounts to R24. The inventory holding cost amounts to 10% of the unit purchase price.
- JoAnn Manufacturing has projected the following sales for the coming year 01 02 03 04 Sales $53,475 $59,725 $ 68,775 $ 74,050 The company places orders each quarter that are 30 percent of the following quarter's sales and has a 30-day payables period. What is the payment of accounts for the third quarter? Mutiple Choice O $21.360.00 121687.50 $22.22969 $19,72750A. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Required: 1. Compute the economic order quantity. 2. How many orders would be placed under the EOQ policy? 3. Compute the annual ordering cost for the EOQ. 4. Compute the annual carrying cost for the EOQ. 5. Compute the total inventory-related cost at the EOQ. 6. Previously, the company had been purchasing 5,000 units of product X per order: What is the ordering cost per year under the previous policy? ii. The annual carrying cost? iii. How much money does the company save over the policy of purchasing 5,000 units per order using the EOQ policy? i. B. Kings Company presents the following information: 1. Annual credit sales: P 25,200,000 2. Collection period: 3 months 3. Rate of return: 12% Kings company considers changing its credit term from n/30 to 3/10, 1/30. The following are…Use the information provided below to calculate the Cost of sales for 2023. INFORMATION Oyster Manufacturers had an inventory of 30 000 units of Product B (at a production cost of R11 per unit) on 01 January 2023. An additional 600 000 units are expected to be produced during 2023. The unit production cost of Product B is expected to be R12 per unit during 2023. An inventory of 45 000 units is expected on 31 December 2023. The first-in-first-out method of valuing inventories is used.