Question: Ergonomics Inc. sells ergonomically designed office chairs. The company has the following informa…

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Jun 13, 2022

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Question: Ergonomics Inc. sells ergonomically designed office chairs. The company has the following informa…

by | Jun 13, 2022 | Questions & Answers


Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information Average demand24 units per day Average lead time-40 days Item unit cost $60 for orders of less than 300 units Item unit cost $58 for orders of 300 units or more Ordering cost $35 Inventory carrying cost 25% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time a. Calculate EOQ if unit cost is $60 and $58. (Note: These EOQs do not need to be feasible in their price range.) (Round up your answers to the next whole number.) EOQ Unit cost at $60 units Unit cost at $58 units b. Calculate annual ordering costs for each altemative? (Round your answers to 2 decimal places.) nua Ordering Cost Unit cost at $60 Unit cost at $58 c. Calculate annual inventory carrying costs for each alternative? (Round your answers to 2 decimal places.) Annua Ca Cost Unit cost at $60 Unit cost at $58

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Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information Average demand24 units per day Average lead time-40 days Item unit cost $60 for orders of less than 300 units Item unit cost $58 for orders of 300 units or more Ordering cost $35 Inventory carrying cost 25% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time a. Calculate EOQ if unit cost is $60 and $58. (Note: These EOQs do not need to be feasible in their price range.) (Round up your answers to the next whole number.) EOQ Unit cost at $60 units Unit cost at $58 units b. Calculate annual ordering costs for each altemative? (Round your answers to 2 decimal places.) nua Ordering Cost Unit cost at $60 Unit cost at $58 c. Calculate annual inventory carrying costs for each alternative? (Round your answers to 2 decimal places.) Annua Ca Cost Unit cost at $60 Unit cost at $58

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