Asked by
Binod Aryal
on Dec 09, 2024
Verified
Xylex Corporation has an annual demand of 110,000 units for its products. Its carrying cost per unit is $0.37, and its order costs are $50 per order. Given this information, calculated the number of orders the company will make during the year.
A) 22 orders
B) 21 orders
C) 20 orders
D) 19 orders
E) 18 order
Annual Demand
The total quantity of a product or service that consumers in a specific market want to purchase over the course of a year.
Carrying Cost
The total cost of holding inventory, including storage, insurance, taxes, and opportunity cost.
Order Costs
Expenses incurred when ordering and receiving goods, which may include costs related to processing, shipping, and handling.
- Determine the economic order quantity (EOQ) for managing inventory and comprehend its effect on cost implications.
- Comprehend the significance of carrying and ordering expenses in inventory control and their impact on business activities.
Verified Answer
JM
Learning Objectives
- Determine the economic order quantity (EOQ) for managing inventory and comprehend its effect on cost implications.
- Comprehend the significance of carrying and ordering expenses in inventory control and their impact on business activities.