Purchase Solution

Magyar Golf Supplies

Not what you're looking for?

Ask Custom Question

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.

Attachments
Purchase this Solution
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:
Gaurav Agarwal, MS
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."
Purchase this Solution
Free BrainMass Quizzes
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

View More Free Quizzes
Related BrainMass Solutions

  • Finance Problems P1-1A, P1-2A, BYP1-4

    During the first month, advertising costs totaled $750, of which $150 was unpaid at March 31, and $400 was paid to members of the high school golf team for retrieving golf balls.

  • Journalizing Transactions and Trial Balance

    Mar. 10 Purchased golf clubs and other equipment for $4,700 from Golden Bear Company, payable in 30 days. Mar. 18 Received golf fees of $1,200 in cash from customers for golf fees earned.

  • Charter Golf Case

    597529 Charter Golf Case Charter Golf, Inc. manufactures and sells golf apparel and supplies. Ken worked as a charter sales representative for 6 months when he was offered a position with a competing firm.

  • Donegan's Lawn Care Service: Prepare Trial Balance

    July 26 Billed Golf View Condominiums $ 200 for mowing services. The entire amount is due August 1. July 30 Collected $ 150 from Lost Creek Cemetery for mowing services provided on July 25.

  • Denny Asbestos Removal Company

    the Peregrine Golf Club of Eagle, Colorado. Over the last 12 months this customer submitted 2 order for 86 golf clubs that had to be produced in 3 batches due to differences in product labeling requested by the customer.

  • Defining cost for different activities

    ., golf course) customizes its golf carts with its own color scheme and logo. The company typically makes all of the golf carts for a customer before starting work on the nest customer's golf carts.

  • Advanced Pricing Techniques - Black Diamond

    Answer Charge $75 for tennis memberships and $50 for golf memberships. Charge $75 for tennis memberships and $200 for golf memberships. Charge $150 for tennis memberships and $200 for golf memberships.

  • Marketing - 3M GreptileTM Grip Golf Glove

    492645 Marketing - 3M Greptile Grip Golf Glove 3M Greptile Grip Golf Glove: Great Golfing.

  • Intermediaries and Exclusive Distribution Agreements

    In exclusive distribution, golf clubs and golf balls would be within this distribution model as they are luxury goods.

View More Related Solutions