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“Just about everyone knows that the Home Depot has stores almost everywhere and sells a wide… 1 answer below » “Just about everyone knows that the Home Depot has stores almost everywhere and sells a wide array of things. In fact, the firm operates more than 2,050 full-service stores in the United States, Canada, Puerro Rico, and Mexico. Each store stocks approximately 40,000 different kinds of build-materials, home improvement supplies, and lawn and garden products. Not long ago, Home Depot was considering stocking a new deluxe toilet unit in its bathroom fixtures department. It was trying to broaden its product line to appeal to home improvement contractors, and this item had recentlv been featured View complete question » “Just about everyone knows that the Home Depot has stores almost everywhere and sells a wide array of things. In fact, the firm operates more than 2,050 full-service stores in the United States, Canada, Puerro Rico, and Mexico. Each store stocks approximately 40,000 different kinds of build-materials, home improvement supplies, and lawn and garden products. Not long ago, Home Depot was considering stocking a new deluxe toilet unit in its bathroom fixtures department. It was trying to broaden its product line to appeal to home improvement contractors, and this item had recentlv been featured in Architectural Digest. The toilet seat contains a special feature. Siting on the seat activates a system that sprays up a fine mist of air freshener and plays music. You can choose the scent and whatever musical selection moves you. (We are not making this up!) Document Preview: “Just about everyone knows that the Home Depot has stores almost everywhere and sells a wide array of things. In fact, the firm operates more than 2,050 full-service stores in the United States, Canada, Puerro Rico, and Mexico. Each store stocks approximately 40,000 different kinds of build-materials, home improvement supplies, and lawn and garden products. Not long ago, Home Depot was considering stocking a new deluxe toilet unit in its bathroom fixtures department. It was trying to broaden its product line to appeal to home improvement contractors, and this item had recentlv been featured in Architectural Digest. The toilet seat contains a special feature. Siting on the seat activates a system that sprays up a fine mist of air freshener and plays music. You can choose the scent and whatever musical selection moves you. (We are not making this up!) The new toilet units had been test marketed successfully, and Home Depot estimated that sales would average 1,000 units per year. It would COSt $100 to keep a unit in inventory for a year, and the fixed reordering cost would be $80. Home Depot’s COSt would be $500 per unit. SAFETY STOCKS AND EXPECTED STOCKOUT COSTS EXPECTED EXPECTED REORDER SAFETY STOCKOUT REORDER SAFETY STOCKOUT POINT STOCK COST POINT STOCK COSTS 10 0 S5~O 20 10 $200 12 2 2′)0 22 12 192 14 ‘I 2’i’i 14 14 186 16 6 22’i 26 16 182 18 8 210 28 18 180 QUESTIONS 4. Home Depot can sell 1,000 units per year at a price of $750 per unit. It estimates that it could sell 1,100 units per year if it dropped the price to $700, and that it would sell only 900 units if it raised the price to $800 per unit. a. What is Home Depot’s EOQ assuming that the quantity discounts are available and that sales are 900 units/year or 1,100 units/year? b. What is the total annual inventory Cost (including carrying  cost, ordering cost, stockout cost, and discounts taken) for each of the three unit prices? c. Which price $700, $750, or $800 per unit, maximizes the annual profit Home… Attachments: Q..docx Q.-Attachment….pdf View less » Sep 18 2015 11:59 AM


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