This preview shows pages 1–3. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Cost of placing an order \$100 What is the reorder point? Student Answer: 643 Units 780 Units 1,560 Units 1,680 Units Instructor Explanation: 15,600/52 = 300/ = 2.6 daily demand 15 = 63 Points Received: 4 of 4 Comments: 3. Question : If Michaels Inc. has a safety stock of 35 units and the average weekly demand is 1 units, how many days can be covered if the shipment from the supplier is delayed ? Student Answer: 21 days 2.5 days 17.5 days 35 days Instructor Explanation: 35/2 = 1.5 days Points Received: 4 of 4 Comments: 4. Question : Pets s sells stuffed tigers. Animals, Inc., manufactures many different stuffed animals. Pets s orders 10,00 tigers per year, 200 per week, at \$10 per tiger. The manufacturer covers all shipping costs. Pets s earns 12 on its cash investments. The purchase-order lead time is 3 weeks. Pets s sells 210 tigers per week. The following data are available (based on managements estimates): Estimated ordering costs per purchase order \$10 Estimated insurance, materials handling, breakage, and so on, per year \$3 Actual ordering costs per order \$15 What is the economic order quantity using the estimated amounts? Student Answer:
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 06/01/2011 for the course ACCT 433b taught by Professor Alfredcontreras during the Spring '11 term at National.

### Page1 / 16

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online