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Ralph Was in the Process of Completing the Quarterly Planning

Question 71

Essay

Ralph was in the process of completing the quarterly planning for the purchasing department when a major computer malfunction lost most of his data.For direct material XXX he was able to recover the following:
 Average inventory level of XXX200 Orders per year 40 Average daily demand 48 Working days per year 250 Annual ordering costs $4,000 Annual carrying costs $6,000\begin{array} { | l | r | } \hline \text { Average inventory level of } X X X & 200 \\\hline \text { Orders per year } & 40 \\\hline \text { Average daily demand } & 48 \\\hline \text { Working days per year } & 250 \\\hline \text { Annual ordering costs } & \$ 4,000 \\\hline \text { Annual carrying costs } & \$ 6,000 \\\hline\end{array} Ralph purchases at the EOQ quantity level.
Required:
Determine the annual demand,the cost of placing an order,the annual carrying cost of one unit,and the economic order quantity.

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