Respuesta :
Answer:
a. 300 units
b. $3,750
c. $3,750
d. 100 units
Explanation:
a. The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
= [tex]\sqrt{\frac{2\times \text{15,000}\times \text{\$75}}{\text{\$25}}}[/tex]
= 300 units
The number of orders would be equal to
= Annual demand ÷ economic order quantity
= 15,000 ÷ 300 units
= 50 orders
And, The average inventory would equal to
= Economic order quantity ÷ 2
= 300 units ÷ 2
= 150 units
The total cost of ordering cost and carrying cost equals to
b. Carrying cost = average inventory × carrying cost per unit
= 150 units × $25
= $3,750
c. Ordering cost = Number of orders × ordering cost per order
= 50 orders × $75
= $3,750
d. The reorder point would be
= Annual demand ÷ number of days × lead time
= 15,000 ÷ 300 days × 2 working days
= 100 units
The Economic order quantity of the southern bell stocks is 300 units, the annual holding costs are $ 3,750, the annual ordering costs are $3,750 and the reorder point is 100 units.
What is EOQ?
EOQ is a computation meant to identify the ideal order quantity for firms to minimize shipping expenses, warehousing space, excess inventory, and overstock charges. It is also known as the 'optimum lot size.'
EOQ = [tex]\sqrt{ \frac{2\times\, \rm\,Annual\,demand\times\, \rm\,ordering\, \rm\,cost}{ \rm\,Carrying\, \rm\,cost}[/tex]
In this case, we have to calculate EOQ, annual holding cost, annual ordering cost, and reorder point:
a. Economic Order Quantity =
= [tex]\sqrt \dfrac{2\times\,15,000\times\,75}{25}[/tex]
= 300 units.
b. Annual holding cost:
Average inventory =
[tex]\dfrac{ \rm\,EOQ}{2}\\\\= \dfrac{300}{2}\\\\= 150\\[/tex]
Annual holding cost = Average inventory × Carrying cost per unit
= 150 × $25
= $ 3,750
c. Annual ordering costs:
Number of orders:
[tex]\dfrac{\rm\,Annual \,demand}{\rm\,EOQ}\\\\= \dfrac{15000}{300}\\\\= 50 \, \rm\,Orders[/tex]
Annual ordering cost = Number of orders × ordering cost per order
= 50 × $75
= $ 3,750
d. Reorder point
= [tex]\dfrac{ \rm\,Annual\,demand}{\rm\,Number\,of\,days}\times\, \rm\,lead\,time[/tex]
= [tex]\dfrac{15,000}{300}\times\,2\\\\= 100\rm\,units\[/tex]
Hence, the answer for a. EOQ = 300 Units, b. Annual holding costs = $3,750, c. Annual ordering costs = $ 3,750 , d. Reorder point = 100 units.
To learn more about EOQ, refer to the link:
https://brainly.com/question/16395657
