The Plastic Saver company produces a specialty plastic product,and has the following information available concerning its inventory items:

Annual demand is 30,000 packages per year.The purchase price per package is $45.
Required:
a.Compute the economic order quantity and the relevant total costs.
b.Compute the total relevant costs,assuming the quantity ordered equals 1,250 units.How many deliveries will be required at the economic order quantity?

Question

The Plastic Saver company produces a specialty plastic product,and has the following information available concerning its inventory items:
  
Annual demand is 30,000 packages per year.The purchase price per package is $45.
Required:
a.Compute the economic order quantity and the relevant total costs.
b.Compute the total relevant costs,assuming the quantity ordered equals 1,250 units.How many deliveries will be required at the economic order quantity?

Quizplus · Accepted Answer

The Answer of The Plastic Saver company produces a specialty plastic product,and has the following information available concerning its inventory items:
  
Annual demand is 30,000 packages per year.The purchase price per package is $45.
Required:
a.Compute the economic order quantity and the relevant total costs.
b.Compute the total relevant costs,assuming the quantity ordered equals 1,250 units.How many deliveries will be required at the economic order quantity?

The Plastic Saver Company Produces a Specialty Plastic Product,and Has