Jones Manufacturing Inc. purchases a component from a Chilean supplier. The demand for that component is exactly 70 units each day. The company is open for business 250 days each year. When the company reorders the product, the lead time from the supplier is exactly 10 days. The product costs $14.00. The company determined that its inventory carrying cost is 20 percent. The company's order cost is $30.00. If the company decides to order 1,750 units each time it places an order, what will be the total annual cost of this policy? (Do not include the product cost in your answer.)

$2750

Explanation:

Given that:

Demand for the component = 70 units each day.

Opening days in a year = 250

Reorder time rate = 10 dyas

Cost of product = $14.00

Carrying cost = 20% = 0.2

Order cost = $30.00

So if the company decides to order 1,750 units each time it places an order, the objective of this question is to find the total annual cost of this policy.

The total annual cost = total inventory cost + total ordering cost

where:

Total inventory cost  = (ordering quantity/2)*unit holding cost

Total inventory cost  = (1750/2) × (0.2 × 14)

Total inventory cost  = 2450

Total ordering cost = (annual demand/ordering quantity) × ordering cost

Total ordering cost =  (70 × 250/1750) × 30

Total ordering cost = ( 70 × 0.1428571429) × 30

Total ordering cost ≅ 300

Total annual cost = 2450 + 300

Total annual cost = $2750

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.