A company uses components at the rate of 600 units per month, which are bought in at a cost of $2.24 each from the supplier. It costs $8.75 each time to place an order, regardless of the quantity ordered. The supplier offers a 5% discount on the purchase price for order quantities of 2,000 items or more. The current EOQ is 750 units. The total holding cost is 10% per annum of the value of inventory held.What is the change in total cost to the company of moving to an order quantity of 2,000 units?
A、$601 additional cost
B、$730 additional cost
C、$730 saving
D、$601 saving
A、$601 additional cost
B、$730 additional cost
C、$730 saving
D、$601 saving
【参考答案及解析】
Order quantity = 750 units $ Order cost 600 x 12 x 8.75/750 = 84 Holding cost 0.1 x 2.24 x 750/2 = 84 Purchase cost 600 x 12 x 2.24 = 16.128 Total cost 16.296 Order quantity = 2,000 units $ Order cost 600 x 12 x 8.75/2,000 = 31.50 Holding cost 0.1x2.24x0.95x2,000/2 = 212.80 Purchase cost 600 x 12 x 2.24 x 0.95 = 15.321.60 15,565.90 Change in cost = $16,296 - $15,566 = saving of $730.
Order quantity = 750 units $ Order cost 600 x 12 x 8.75/750 = 84 Holding cost 0.1 x 2.24 x 750/2 = 84 Purchase cost 600 x 12 x 2.24 = 16.128 Total cost 16.296 Order quantity = 2,000 units $ Order cost 600 x 12 x 8.75/2,000 = 31.50 Holding cost 0.1x2.24x0.95x2,000/2 = 212.80 Purchase cost 600 x 12 x 2.24 x 0.95 = 15.321.60 15,565.90 Change in cost = $16,296 - $15,566 = saving of $730.