On an annual requirement of 100 items spread evenly throughout the year,any purchaser has an opportunity of buying all 100 units at a price of $100 each,or buying 10 units at a time at a price of $150.If the inventory carrying cost is 25 percent per year and assuming no ordering costs:
A) buying 100 at a time will save the company $3,937.50 per year.
B) buying 100 at a time will save the company $4,125 per year.
C) buying 100 at a time will save the company $6,250 per year.
D) buying 10 at a time will save the company $3,875 per year.
E) buying 10 at a time will save the company $5,000 per year.
Correct Answer:
Verified
Q1: The following cost is not a carrying,holding,or
Q3: "A" items in ABC analysis are:
A)reviewed infrequently.
B)normally
Q4: A material requirements planning (MRP)system:
A)controls the "A"
Q5: A reduction in set-up costs and time
Q6: The demand for a particular service may
Q7: Decoupling inventories are carried:
A)to cover a well-defined
Q8: Capacity requirements planning (CRP):
A)uses ABC analysis as
Q9: Continuous Planning,Forecasting and Replenishment (CPFR)generates the most
Q10: When a retailer uses daily sales of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents