Production capacity and inventory capacity are

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production capacity and inventory capacity are unlimited; the selling price, sales mix, variable cost and fixed costs do not affect the order size computation.
24. Missile Company has correctly computed its economic order quantity as 5009 units. However, management feels it would rather order in quantities of 600 units. How should Missile's total annual purchase-order costs and total annual carrying cost for an order quantity of 600 units compare to the respective amounts for an order quantity of 500 units? .
25. Economic order quantity models and two-bin system are commonly used controls for a company's materials function. Those controls primarily relate to what part of the cycle?
26. The selling price of the product is relatively high and the purchase cost of the product is relatively low. In this situation:
27. The Stewart Company uses the economic order quantity model for inventory management. A decrease in which one of the following variables would increase the EOQ? A. Annual sales B. Cost per order C. Safety stock D. Carrying costs To increase EOQ, annual demand and cost per order should be increase and carrying cost per unit should be decreased. Hence, choice-letter "d" is correct. A decrease in carrying costs increases the EOQ.

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