Brenda is the owner of a spa store that operates 50 weeks per year. Spair Shampoo is a high margin stock-keeping unit (SKU), but the product goes out of stock frequently. She decides to use a fixed-quantity system (FQS) and orders boxes of Spair Shampoo containing 10 bottles per box from a vendor 160 miles away. She collects the following data with respect to the sales of Spair Shampoo.
Demand 10 boxes per week
Order Cost $40 per order
Item Cost $80 per box per year
Inventory-Holding Cost 15 percent per year
Lead Time 3 weeks
Standard Deviation in Weekly Demand 6
Service Level 96 percent
Using the given data, it can be concluded that the economic order quantity (EOQ) of the Spair Shampoo boxes is:
a. less than 25 boxes.
b. more than 25 but less than or equal to 35 boxes.
c. more than 35 but less than or equal to 45 boxes.
d. more than 55 boxes.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Brenda is the owner of a spa store that operates 50 weeks per year. Spair Shampoo is a high margin stock-keeping unit (SKU), but the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
At December 31, 2018, Hawke Company reports the following results for its calendar year. Cash sales $ 1,905,000 Credit sales 5,682,000 In addition, its unadjusted trial balance includes the following items.
Answers (1)
Assuming no direct factory overhead costs (i. e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Bit product manager wishes to achieve a product contribution margin of 35%.
Answers (1)
In addition to attracting new workers, ford's payment system:
Answers (1)
Which statement best describes a significant similarity between the AICPA and IESBA codes? Both codes incorporate the conceptual framework approach for evaluating threats when specific rules on a matter do not exist.
Answers (1)
Which of the following should have the strongest cause and effect relationship with overhead costs? Non-value-added costs. Cost drivers. Value-added costs. Cost followers. Units of output.
Answers (1)
New Questions in Business
At a recent staff meeting, the director of the centerville diagnostic imaging center told the staff, "our clients hate to waste time in a waiting room, and they may go to another center if we don't provide prompt service.
Answers (1)
Implicit transaction
Answers (1)
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $8 each or to produce them in-house.
Answers (2)
A stock's holding period return represents: a. the return from a stock relative to the return from a specific portfolio. b. the total return earned over a specific period through buying and selling an asset. c.
Answers (1)
Evaluate the current China/Taiwan logistics costs. Assume a current total volume of 190,000 CBM and that 89 percent is shipped direct from the supplier plants in containers.
Answers (1)