Birdd Company Uses 450 Units of a Part Each Year

question 18

Essay

Birdd Company uses 450 units of a part each year.The cost of placing one order is $10; the cost of carrying one unit in inventory for a year is $2.Birdd currently orders 90 units at a time. A. What is the annual ordering cost of Birdd's current policy?
B. What is the annual carrying cost of Birdd's current policy?
C. What is the total cost of Birdd's current policy?
D. What is the EOQ for Birdd?
E. What is the total inventory-related cost at the EOQ?

---

Definitions:

Financial Intermediaries

Entities such as banks and credit unions that serve as middlemen in financial transactions, facilitating funds' flow between savers and borrowers.

Bond Buyer

An investor or entity that purchases bonds, which are debt securities issued by corporations or governments.

Interest Rate

It refers to the profit or cost of borrowing capital, typically expressed as an annual percentage.

Sound Finances

A term describing a stable and healthy financial condition characterized by manageable levels of debt and efficient budgeting.