The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00 per unit. The ordering cost is $10.00 per order, and the annual holding cost is estimated at 15% of the unit value. 1. What is the EOQ for the ABC? 2. What is the total annual inventory cost for the mother board if it is ordered in economic quantities? 3. How many orders should be placed each year?
The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00 per unit. The ordering cost is $10.00 per order, and the annual holding cost is estimated at 15% of the unit value. 1. What is the EOQ for the ABC? 2. What is the total annual inventory cost for the mother board if it is ordered in economic quantities? 3. How many orders should be placed each year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
with formula in excel
![C D
G
A
B
E
F
H
M
N
1
The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of
2
$30.00 per unit. The ordering cost is $10.00 per order, and the annual holding cost is estimated
3
at 15% of the unit value.
4
1. What is the EOQ for the ABC?
2. What is the total annual inventory cost for the mother board if it is ordered in economic
7 quantities?
3. How many orders should be placed each year?
8
9
10
11 D Demand
40000 units
12 H Holding Cost
4.5 S/unit/yr
13 s Ordering Cost
10 $/order
14
15
16
17
Case 1
Case 2
Case 3
Case 4
Case 5
Case 6
Case 7
18
Quantity
100
200
300
400
500
1000
2000
19
Average
20
Total Holding Cost
21
Total Ordering Cost
22
Total COST =
23
un vo](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd41cb7d-7453-4840-bf55-48713cf1ed67%2F0486318f-4782-4fe9-91d9-01fdfb1922fc%2Ffp01npp_processed.png&w=3840&q=75)
Transcribed Image Text:C D
G
A
B
E
F
H
M
N
1
The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of
2
$30.00 per unit. The ordering cost is $10.00 per order, and the annual holding cost is estimated
3
at 15% of the unit value.
4
1. What is the EOQ for the ABC?
2. What is the total annual inventory cost for the mother board if it is ordered in economic
7 quantities?
3. How many orders should be placed each year?
8
9
10
11 D Demand
40000 units
12 H Holding Cost
4.5 S/unit/yr
13 s Ordering Cost
10 $/order
14
15
16
17
Case 1
Case 2
Case 3
Case 4
Case 5
Case 6
Case 7
18
Quantity
100
200
300
400
500
1000
2000
19
Average
20
Total Holding Cost
21
Total Ordering Cost
22
Total COST =
23
un vo
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