Purchase Solution

# Magyar Golf Supplies

Not what you're looking for?

Michael Traci, the very new inventory manager at Magyar Gold Supplies, is considering using the economic order quantity for controlling inventory. He wants you to apply the EOQ to a sample product, the Super-Z wedge. The Super-Z Wedge has an average demand of 30 units/period with an ordering cost of \$30/order. The cost of carrying a Super-Z Wedge in inventory is \$2.00/unit/period. No safety stock is carried for this item.
a. Calculate the economic order quantity.
b. Calculate the average cycle stock for this item using the order quantity in question a.
c. Assuming there are 12 periods per year, calculate total cost per year.

##### Solution Summary

This solution contains step-by-step calculations to determine the economic order quantity, average cycle stock and total cost per year.

##### Solution Preview

Please see the attached file.

Demand 30
Order Cost \$30.00
Holding Cost \$2.00

a) ...

Solution provided by:
###### Education
• BE, Bangalore University, India
• MS, University of Wisconsin-Madison
###### Recent Feedback
• "Your explanation to the answers were very helpful."
• "What does 1 and 0 means in the repair column?"
• "Went through all of the formulas, excellent work! This really helped me!"
• "try others as well please"
• "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."

##### Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

##### Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

##### Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

##### Operations Management

This quiz tests a student's knowledge about Operations Management

##### Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce