Answer the following questions using the information below:
The following information applies to Dental Labs Plus,which supplies dental burs (used in dental drills)to dentists throughout Victoria.Dental Labs Plus purchases the dental burs from a manufacturer which has a reputation for very high quality in its manufacturing operation.
$$\begin{array} { l l }
\text { Antual demand (weekly demand = 1/52 of annual demand) } & 31200 \text { units } \
\text { Orders per year } & 25 \
\text { Lead time in days } & 20 \text { days } \
\text { Cost of placing an order } & \$ 100
\end{array}$$
-What are the annual relevant carrying costs,assuming each order was made at the economic-order-quantity (EOQ)amount?
A)$1000
B)$6000
C)$2500
D)$200

Question

Answer the following questions using the information below:
The following information applies to Dental Labs Plus,which supplies dental burs (used in dental drills)to dentists throughout Victoria.Dental Labs Plus purchases the dental burs from a manufacturer which has a reputation for very high quality in its manufacturing operation.
 $$\begin{array} { l l } 
\text { Antual demand (weekly demand = 1/52 of annual demand) } & 31200 \text { units } \
\text { Orders per year } & 25 \
\text { Lead time in days } & 20 \text { days } \
\text { Cost of placing an order } & \$ 100
\end{array}$$
-What are the annual relevant carrying costs,assuming each order was made at the economic-order-quantity (EOQ)amount?
A)$1000
B)$6000
C)$2500
D)$200

Quizplus · Accepted Answer

The annual relevant carrying costs at the EOQ point are typically half of the product of the annual demand, the cost per unit to hold one unit in inventory for a year (holding cost), and the square root of the ratio of two times the annual demand times the order cost divided by the holding cost. Without specific numbers from the question, the correct answer is chosen based on common EOQ formula applications, where carrying costs are a significant component of total inventory costs.

Answer the Following Questions Using the Information Below: the Following

Answer the Following Questions Using the Information Below:
the Following