View the step-by-step solution to:

Question

1. HTJ is open 12 months out of the year. At HTJ, the demand for books is very consistent of 100 pieces per month.

HTJ orders the books from a distributor in Denmark at an ordering cost of 800 SEK per order. One book costs 80 SEK/piece, and annual carrying cost percentage is 20%.

a. The EOQ is? (round up to the nearest whole number)

b. How many orders will HTJ place in a year? (round up to the nearest whole number)

c. What is the average inventory? (round up to the nearest whole number) AND what is the inventory turnover?

d. What is the annual ordering cost (based on the rounded-up number of orders)?

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes