Marantz Inc.
Get your Assignment in a Minimum of 3 hours
Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.
Free InquiryMarantz Inc. produces various AV devices with a wide assortment of different models for its customers. One item, AV3100 is very popular. Keen of keeping its stock under control, a decision is taken to order only the optimum economic quantity, for this item, each time. You have the following information.
Annual demand (units) |
48,600 |
Purchase price per unit |
$ 250 |
Carrying/Holding costs per unit |
$ 6 |
Cost per order |
$ 200 |
Required:
1. Determine the EOQ using the equation method. (6 marks)
2. Fill in the blanks in the following table using the above data. (8 marks)
No. of orders |
1 |
10 |
20 |
30 |
90 |
120 |
Order size |
||||||
Average stock |
||||||
Carrying (Holding) costs |
||||||
Order costs |
||||||
Total costs |
||||||
3. Calculate the holding, ordering cost & their total cost at the EOQ level. (5 marks)
4. Plot the graph at the EOQ level showing the numbers (2 marks).
5. Marantz Inc. has been offered a 3 per cent discount on the cost if it places orders in quantities of 18,200. Discuss whether the company should accept the discount and place larger orders, show your workings. (9 marks)
"Is this question part of your assignment? We Can Help!"
"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Get Started