Problem 7 9 Algo Ergonomics Inc Sells Ergonomically Designed Office Chairs The Company Has The Following Information 1 (44.26 KiB) Viewed 94 times
Problem 7 9 Algo Ergonomics Inc Sells Ergonomically Designed Office Chairs The Company Has The Following Information 2 (43.57 KiB) Viewed 94 times
Problem 7-9 (Algo) Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand = 36 units per day Average lead time = 50 days Item unit cost = $70 for orders of less than 400 units Item unit cost = $68 for orders of 400 units or more Ordering cost = $45 Inventory carrying cost = 25% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time. .. Calculate EOQ If unit cost is $70 and $68 (Note: These Qs do not need to be feasible in their price range.) (Round up your answers to the next whole number.) Answer is complete but not entirely correct. Unit cost at $70 Unit cost at 568 FOG 160 unite 163 units
b. Calculate annual ordering costs for each alternative? (For the first value, use your rounded EOQ from Part a. For the second value, use the lowest feasible order quantity needed to qualify for that price level. Round your answers to 2 decimal places.) Answer is not complete. Annual Ordering Cost Unit cost at $70 2,531 25 Unit cost at $68 c. Calculate annual inventory carrying costs for each alternative? (For the first value, use your rounded EOQ from Porta. For the second value, use the lowest feasible order quantity needed to qualify for that price level. Round your answers to 2 decimal places.) Annual Inventory Carrying Cost Unit cost at $70 Unit cost at $68
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