Birdd Company Uses 450 Units of a Part Each Year

question 59

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. Calculate the annual ordering cost of Birdd's current policy.
B. Calculate the annual carrying cost of Birdd's current policy.
C. Calculate the total cost of Birdd's current policy.
D. Calculate the EOQ for Birdd.
E. Calculate the total inventory-related cost at the EOQ.

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Definitions:

Environmental Changes

Alterations in the natural or built environment due to natural processes or human activities.

Behaviourist

A proponent of a branch of psychology that studies observable behaviors, often through conditioning, without emphasizing internal processes.

Positive Outcomes

The beneficial results or effects of actions, decisions, or events, often measured in terms of success, progress, or improvement.

Responses

Reactions or behaviors of an organism in response to a specific stimulus or situation.