Respuesta :
Answer:
30 motercycles should be order in each lot to minimum inventory cost
Explanation:
given data
motorcycle sells = 300
motorcycle costs= $11000
fixed delivery charge = $1500
store a motorcycle cost = $1000
to find out
How many motorcycles should be ordered
solution
we will apply here formula for economic order quantity for minimum cost is
economic order quantity = [tex]\sqrt{\frac{2DC}{S}}[/tex] ..............1
here D is motorcycle sells i.e 300 and C is delivery charge and S is storage cost
so put here all these value we get
economic order quantity = [tex]\sqrt{\frac{2*300*1500}{1000}}[/tex]
economic order quantity = 30
so 30 motercycles should be order in each lot to minimum inventory cost
In order to minimize inventory cost, 30 motorcycles should be order in each lot.
What is inventory cost?
Inventory costs are defined as those costs to a business linked with retention stock, or money that is secure up in stock.
By computing some economic order measure, the firm tries to find out the order size that will minimise the total stock list or inventory costs.
Computation of inventory cost:
According to the given information,
Motorcycle sells = 300
Motorcycle costs= $11000
fixed delivery charge = $1500
Store a motorcycle cost = $1000
Motorcycles should be ordered = ?
First, find the value of economic order quantity for minimum cost:
[tex]\text{Economic Order Quantity} = \sqrt{\frac{2DC}{S} }[/tex]
Where, D = Motorcycle Sells = 300
C = Delivery Charge and
S = Storage Cost
Now, put the given values in the above formula;
[tex]\text{Economic Order Quantity} = \sqrt{\frac{2DC}{S}}\\\\\text{Economic Order Quantity} = \dfrac{2\times 300\times 1,500}{\$1,000}\\\\\text{Economic Order Quantity} = 30[/tex]
Therefore, 30 motorcycles should be order in every lot to minimum inventory cost.
To learn more about the inventory cost, refer to:
https://brainly.com/question/14184995
