Brett's Gift Box estimates that it will sell 30,000 porcelain figurines next year. Because porcelain figurines are so easily damaged, the average per unit carrying cost of the figurines is $25. The per order cost of ordering is $800. Assume that Brett wants a safety stock of 75 figurines. If Brett reorders the figurines based on the economic order quantity, what is Brett's average inventory of porcelain figurines?

Question

03-08-2021
Business

Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

Brett's Gift Box estimates that it will sell 30,000 porcelain figurines next year. Because porcelain figurines are so easily damaged, the average per unit carrying cost of the figurines is $25. The per order cost of ordering is $800. Assume that Brett wants a safety stock of 75 figurines. If Brett reorders the figurines based on the economic order quantity, what is Brett's average inventory of porcelain figurines?

Sagot :

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.

The style that the fashion industry decided should replace the miniskirt about 1970 was called

Among the Nuer, if a quarrel erupted between members of different minimal lineages, it would ordinarily be resolved when the quarreling minimal lineages recogni

what is the process where marketers can compare the response of similar people under different circumstances?

Suppose that 5 J of work is needed to stretch a spring from its natural length of 24 cm to a length of 41 cm. (a) How much work is needed to stretch the spring

Which expression is equivalent to (5√3²) ¹/3

Undercutting action of the sea results in A)barrier splits. B)sea cliffs. C)lagoons. D)tombolos. E)sea terrace.

Which of the following was one of the reasons that the United States encouraged Chinese immigration after the Civil War? a. The United States needed to populate

A submarine sandwich shop surveyed a group of 20 prospective customers about how much each would be willing to pay for the shop's new foot-long teriyaki chicken

Billy went to the hardware store and bought 18 identical sections of pipe. The total length of the pipes was 45. 18 meters. How long was each pipe?.

this dj/producer founded the juice crew and utilized the sp-1200 to manipulate samples and produce records in a unique way.

anthougo anthougo · Answer 1 · 2021-08-11T15:20:54-04:00

If Brett reorders the figurines based on the economic order quantity, Brett's average inventory of porcelain figurines is 768 units.

The economic order quantity is computed as the square root of (2 x Annual Sales Unit (Demand) x Ordering Cost)/Carrying Cost

= square root of (2 x 30,000 x $800)/$25

= square root of 1,920,000

= 1,386 units

Average inventory = (Economic Order Quantity)/2 + Safety stock

= 1,386/2 + 75

= 693 + 75

= 768 units

Thus, Brett's Gift Box average inventory of porcelain figurines is 768.

Learn how to calculate average inventory and the use of economic order quantity here: https://brainly.com/question/5525521 and https://brainly.com/question/9068415 respectively.

Data:

Estimate sales units for next year = 30,000 porcelain figurines

Average per-unit carrying cost = $25

Per-order Ordering Cost = $800

Required safety stock = 75 figurines

Sagot :

Other Questions