Question : 21) Miniature Company sells stuffed tigers. Birtal Inc. manufactures many : 1211974

 

21) Miniature Company sells stuffed tigers. Birtal Inc. manufactures many different stuffed animals. Miniature orders 20,800 tigers per year, 400 per week, at $15 per tiger. The manufacturer covers all shipping costs. Miniature earns 15% on its cash investments. The purchase-order lead time is 3 weeks. Miniature sells 310 tigers per week. The following data are available (based on management’s estimates):

 

Estimated ordering costs per purchase order$22

Estimated insurance, materials handling, breakage,

and so on, per year$7

Actual ordering costs per order$25

 

What is the economic order quantity using the estimated amounts?

A) 637.7 stuffed tigers

B) 314.5 stuffed tigers

C) 191 stuffed tigers

D) 325 stuffed tigers

22) Relevant total costs in the economic order quantity decision model equal relevant ordering costs plus relevant ________.

A) carrying costs

B) stockout costs

C) quality costs

D) purchasing costs

 

Answer the following questions using the information below:

 

The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:

 

Relevant ordering costs per purchase order$450

Relevant carrying costs per year for each package:

Required annual return on investment15%

Required other costs per year$4

 

Annual demand is 30,000 packages per year. The purchase price per package is $48.

 

23) What is the economic order quantity?

A) 1,936.50 units

B) 1,414.21 units

C) 1,552.65 units

D) 2,598.07 units

 

24) What is the annual relevant ordering costs?

A) $5,196

B) $8,695

C) $6,971

D) $9,547

25) What is the annual relevant carrying costs?

A) $5,196

B) $6,971

C) $8,695

D) $3105.30

 

26) What are the relevant total costs at the economic order quantity?

A) $17,390

B) $10,392

C) $13,942

D) $11,800

 

27) Which of the following statements is true of Allianz’s EOQ system costs?

A) At EOQ, the annual relevant ordering costs is exactly the half of annual relevant carrying costs.

B) At EOQ, the annual relevant carrying costs is higher than the annual relevant ordering costs.

C) At EOQ, the annual relevant carrying costs is exactly the half of the annual relevant total costs.

D) At EOQ, the annual relevant carrying costs is equal to the annual relevant total costs.

28) What are the total relevant costs, assuming the quantity ordered equals 1,000 units?

A) $17,100

B) $16,500

C) $15,500

D) $19,100

 

29) How many deliveries will be required at the economic order quantity?

A) 15.50 deliveries

B) 15 deliveries

C) 19.32 deliveries

D) 21.21 deliveries

 

30) The annual relevant total costs are at a minimum when relevant ________.

A) ordering costs are greater than the relevant carrying costs

B) carrying costs are greater than the relevant ordering costs

C) carrying costs are equal to relevant ordering costs

D) carrying costs are equal to relevant purchasing costs

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more