Answer the following questions using the information below:
The following information applies to Krynton Corp. which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.
$\begin{array}{lr}
\text { Annual demand (weekly demand }=1 / 52 \text { of annual demand) } & 13,000 \text { units } \
\text { Orders per year as per EOQ model } & 13 \
\text { Lead time in days } & 15 \text { days } \
\text { Annual relevant carrying costs } & \$ 2,600
\end{array}$
-What are the annual relevant ordering costs,assuming that relevant total costs are minimal?
A) $1,000
B) $2,253.33
C) $2,600
D) $6,000

Question

Answer the following questions using the information below:
The following information applies to Krynton Corp. which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.
 $\begin{array}{lr}
\text { Annual demand (weekly demand }=1 / 52 \text { of annual demand) } & 13,000 \text { units } \
\text { Orders per year as per EOQ model } & 13 \
\text { Lead time in days } & 15 \text { days } \
\text { Annual relevant carrying costs } & \$ 2,600
\end{array}$
-What are the annual relevant ordering costs,assuming that relevant total costs are minimal?
A) $1,000
B) $2,253.33
C) $2,600
D) $6,000

Quizplus · Accepted Answer

In the EOQ model, the annual relevant ordering costs are equal to the annual relevant carrying costs when total costs are minimized. Therefore, the annual relevant ordering costs are $2,600.

Answer the Following Questions Using the Information Below: the Following

Answer the Following Questions Using the Information Below:
the Following