Ralph Was in the Process of Completing the Quarterly Planning

question 110

Essay

Ralph was in the process of completing the quarterly planning for the purchasing department when a major computer malfunction lost most of his data.For direct material XXX he was able to recover the following:
$$\begin{array} { | l | r | } \hline \text { Average inventory level of } X X X & 200 \\\hline \text { Orders per year } & 40 \\\hline \text { Average daily demand } & 48 \\\hline \text { Working days per year } & 250 \\\hline \text { Annual ordering costs } & \$ 4,000 \\\hline \text { Annual carrying costs } & \$ 6,000 \\\hline\end{array}$$ Ralph purchases at the EOQ quantity level.
Required:
Determine the annual demand,the cost of placing an order,the annual carrying cost of one unit,and the economic order quantity.

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Definitions:

Negotiation

The process by which parties in dispute discuss and ultimately reach a mutually satisfactory agreement or solution.

Third Side

A concept in conflict resolution that suggests the involvement of an impartial third party who can help mediate or offer solutions to disputes between two other parties.

Legal Sanctions

Measures taken by a legal authority to enforce laws, ranging from fines and penalties to imprisonment.

Conflict Resolution

The process of addressing and settling disputes or disagreements among parties through dialogue, negotiation, or other peaceful means.