KF
Kimbryanna Finney
Answers (3)
KF
Answered
Clement Bait and Tackle has been buying a chemical water conditioner for its bait (to help keep its baitfish alive) in an optimal fashion using EOQ analysis. The supplier has now offered Clement a discount of $0.50 off all units if the firm will make its purchases monthly or $1.00 off if the firm will make its purchases quarterly. Current data for the problem are: D = 720 units per year; S = $6.00, I = 20% per year; P = $25.
a. What is the EOQ at the current behaviour?
b. What is the annual total cost, including product cost, of continuing their current behaviour?
c. What are the annual total costs, if they accept either of the proposed discounts?
d. At the cheapest of the total costs, are carrying costs equal to ordering costs? Explain.
a. What is the EOQ at the current behaviour?
b. What is the annual total cost, including product cost, of continuing their current behaviour?
c. What are the annual total costs, if they accept either of the proposed discounts?
d. At the cheapest of the total costs, are carrying costs equal to ordering costs? Explain.
On May 14, 2024
(a) Q∗ = 2⋅720⋅62⋅25\sqrt { \frac { 2 \cdot 720 \cdot 6 } { 2 \cdot 25 } }2⋅252⋅720⋅6 = 41.57 or 42 units at a time.
(b) TC = 720 ∙ 25 + 72041.57\frac { 720 } { 41.57 }41.57720 ∙ 6 + 41.572\frac { 41.57 } { 2 }241.57 ∙ .2 ∙ 25 = 18000 + 103.92 = 103.92 + $18,207.85
(c) Placing orders on a monthly basis implies twelve orders per year where Q = 720 / 12 = 60. Placing orders on a quarterly basis implies four orders per year where Q = 720/4 = 180.
(d) They are not; accepting the discount requires an order quantity that is not EOQ. Purchasing 42 units at a time led to setup costs and holding costs of $104 each. With the more favorable discount, setup costs are $24 while holding costs are $432.
Range 1 Range 2 Range 3 Quantity 1−5960−179179+ Unit Price, P $25$24.5$24 Q* (Square root formula) 41.5741.9942.43 Order Quantity 41.5760180 Holding cost 103.927224 Setup cost 103.93147432 Product cost 18,000.0017,640‾17,280‾ Total cost, TC$18,207.85$17,859$17,736\begin{array} { | l | c | c | c | } \hline & \text { Range 1 } & \text { Range 2 } & \text { Range 3 } \\\hline \text { Quantity } & 1 - 59 & 60 - 179 & 179 + \\\hline \text { Unit Price, P } & \$ 25 & \$ 24.5 & \$ 24 \\\hline & & & \\\hline \text { Q* (Square root formula) } & 41.57 & 41.99 & 42.43 \\\hline \text { Order Quantity } & 41.57 & 60 & 180 \\\hline & & & \\\hline \text { Holding cost } & 103.92 & 72 & 24 \\\hline \text { Setup cost } & 103.93 & 147 & 432 \\\hline \text { Product cost } & 18,000.00 & \underline { 17,640 } & \underline { 17,280 } \\\hline \text { Total cost, } T _ { C } & \$ 18,207.85 & \$ 17,859 & \$ 17,736 \\\hline\end{array} Quantity Unit Price, P Q* (Square root formula) Order Quantity Holding cost Setup cost Product cost Total cost, TC Range 1 1−59$2541.5741.57103.92103.9318,000.00$18,207.85 Range 2 60−179$24.541.99607214717,640$17,859 Range 3 179+$2442.431802443217,280$17,736
(b) TC = 720 ∙ 25 + 72041.57\frac { 720 } { 41.57 }41.57720 ∙ 6 + 41.572\frac { 41.57 } { 2 }241.57 ∙ .2 ∙ 25 = 18000 + 103.92 = 103.92 + $18,207.85
(c) Placing orders on a monthly basis implies twelve orders per year where Q = 720 / 12 = 60. Placing orders on a quarterly basis implies four orders per year where Q = 720/4 = 180.
(d) They are not; accepting the discount requires an order quantity that is not EOQ. Purchasing 42 units at a time led to setup costs and holding costs of $104 each. With the more favorable discount, setup costs are $24 while holding costs are $432.
Range 1 Range 2 Range 3 Quantity 1−5960−179179+ Unit Price, P $25$24.5$24 Q* (Square root formula) 41.5741.9942.43 Order Quantity 41.5760180 Holding cost 103.927224 Setup cost 103.93147432 Product cost 18,000.0017,640‾17,280‾ Total cost, TC$18,207.85$17,859$17,736\begin{array} { | l | c | c | c | } \hline & \text { Range 1 } & \text { Range 2 } & \text { Range 3 } \\\hline \text { Quantity } & 1 - 59 & 60 - 179 & 179 + \\\hline \text { Unit Price, P } & \$ 25 & \$ 24.5 & \$ 24 \\\hline & & & \\\hline \text { Q* (Square root formula) } & 41.57 & 41.99 & 42.43 \\\hline \text { Order Quantity } & 41.57 & 60 & 180 \\\hline & & & \\\hline \text { Holding cost } & 103.92 & 72 & 24 \\\hline \text { Setup cost } & 103.93 & 147 & 432 \\\hline \text { Product cost } & 18,000.00 & \underline { 17,640 } & \underline { 17,280 } \\\hline \text { Total cost, } T _ { C } & \$ 18,207.85 & \$ 17,859 & \$ 17,736 \\\hline\end{array} Quantity Unit Price, P Q* (Square root formula) Order Quantity Holding cost Setup cost Product cost Total cost, TC Range 1 1−59$2541.5741.57103.92103.9318,000.00$18,207.85 Range 2 60−179$24.541.99607214717,640$17,859 Range 3 179+$2442.431802443217,280$17,736
KF
Answered
Under the Uniform Commercial Code,contracts for the sale of goods must be in writing in order to be enforceable if they are priced at ________.
A) $100 or more
B) $500 or more
C) $1,000 or more
D) $1,000 or less
E) $500 or less
A) $100 or more
B) $500 or more
C) $1,000 or more
D) $1,000 or less
E) $500 or less
On May 14, 2024
B
KF
Answered
Answer the question using the accompanying cost ratios for two products, fish (F) and chicken (C) , in countries Singsong and Harmony. Assume that production occurs under conditions of constant costs and that these are the only two nations in the world.Singsong: 1F = 2CHarmony: 1F = 4CIf these two nations specialize based on comparative advantage,
A) Singsong will both produce chicken and catch fish.
B) Harmony will both produce chicken and catch fish.
C) Harmony will produce chicken and Singsong will catch fish.
D) Singsong will produce chicken and Harmony will catch fish.
A) Singsong will both produce chicken and catch fish.
B) Harmony will both produce chicken and catch fish.
C) Harmony will produce chicken and Singsong will catch fish.
D) Singsong will produce chicken and Harmony will catch fish.
On May 13, 2024
C