Answer the following questions using the information below:
The following information applies to Krynton Corp. which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.
$\begin{array}{lr}
\text { Annual demand (weekly demand }=1 / 52 \text { of annual demand) } & 13,000 \text { units } \
\text { Orders per year as per EOQ model } & 13 \
\text { Lead time in days } & 15 \text { days } \
\text { Annual relevant carrying costs } & \$ 2,600
\end{array}$
-Assuming each order was made at the economic order quantity amount,what is the cost of placing an order?
A) $322 per order
B) $200 per order
C) $231 per order
D) $417 per order

Question

Answer the following questions using the information below:
The following information applies to Krynton Corp. which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.
 $\begin{array}{lr}
\text { Annual demand (weekly demand }=1 / 52 \text { of annual demand) } & 13,000 \text { units } \
\text { Orders per year as per EOQ model } & 13 \
\text { Lead time in days } & 15 \text { days } \
\text { Annual relevant carrying costs } & \$ 2,600
\end{array}$
-Assuming each order was made at the economic order quantity amount,what is the cost of placing an order?
A) $322 per order
B) $200 per order
C) $231 per order
D) $417 per order

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) model formula is used to calculate the cost of placing an order. The formula for EOQ is: EOQ = sqrt((2 * Demand * Order Cost) / Carrying Cost). Given that there are 13 orders per year and the carrying cost is $2,600, we can rearrange the formula to solve for the order cost, which results in $200 per order.

Answer the Following Questions Using the Information Below: the Following

Answer the Following Questions Using the Information Below:
the Following