Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

A manager just received a new price list from a supplier. It will now cost $1.00 a box for order quantities of 801 or more boxes, $1.10 a box for 200 to 800 boxes, and $1.20 a box for smaller quantities. Ordering cost is $82 per order and carrying costs are $10 per box a year. The firm uses 3,650 boxes a year. The manager has suggested a "round number" order size of 800 boxes. The manager's rationale is that with a U-shaped cost curve that is fairly flat at its minimum, the difference in total annual cost between 800 and 801 units would be small anyway. What order size would you recommend? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M9608111

Have any Question?


Related Questions in Operation Management

1 what were the major ideological concerns of the artist of

1. What were the major ideological concerns of the artist of the black art movement? To what extent did Baldwin in Amir have similar views about art contest this in politics? 2. What are some of the reasons Medicaid mana ...

Larry ellison starts a company that manufacturers high-end

Larry Ellison starts a company that manufacturers high-end custom leather bags. He hires 2 employees. Each employee only begins working on a bag when a customer order has been received and then she makes the bag from beg ...

Communication between engineering and production a critical

"Communication Between Engineering and Production: A Critical Factor" discusses cost and benefit tradeoffs of design changes. A small design change of a product may enhance a product in ways such as cost or weight, but a ...

Prior to working on this discussion read chapter 8 in your

Prior to working on this discussion, read Chapter 8 in your textbook and all of this week's assigned articles. Chapter 8 introduces lean philosophies that focus on elimination of waste and the increase of logistics speed ...

Describe the common characteristics of organizational

Describe the common characteristics of organizational culture and identify the factors that create and sustain an organization's culture. Your participation preparation document should be a substantive response to the qu ...

Next week super discount airlines has a flight from new

Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from past history that an average of 25 customers (with a standard deviation of 15) cancel t ...

1 describe the four steps for designing an effective

1. Describe the four steps for designing an effective training program (needs assessment-design-implementation-evaluation). Explain how each step works. 2. What are some counter-arguments to the property rights, freedom ...

1 what reasons could account for an organizationrsquos

1. What reasons could account for an organization’s decision to implement a merger or acquisition strategy? 2. How does an organization determine which of the two strategies to implement? 3. Acquisition strategies can be ...

Learning outcome please long answer and no hand writing1

Learning Outcome: please long answer and no hand writing 1. Describe the impact of diversity and the changing workforce on organizations and organizational performance. 2. Examine the role of HR as a strategic partner in ...

I need an informative speech about convenience stores are

I need an informative speech? about Convenience stores are different than gas stations. Minimum of 3 research sources. A speaking outline is to be developed from the preparation outline. The speech is to be delivered fro ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As