Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

A manufacturing company doesn't charge its customers for shipping. It's products are small and lightweight, so there isn't much difference between the cost to ship small orders and large orders. Shipment costs average $84 per.

The company has a challenge to reduce its costs. One idea they are considering is charging customers for small orders. They did a survey asking customers what they would do if the company imposed a $90 fee on orders <$500. Of the 172 customers surveyed, 51 indicated they would pay the fee. The others said they would consolidate their orders.

If the customers who want to avoid the fee consolidate their orders and their orders are reduced by 33%, what cost savings will the company realize from this change in behavior?

Last quarter, company processed 65,104 shipments.

Give the answer in $ (not percentage).

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92540505

Have any Question?


Related Questions in Operation Management

Assignmentsolar co inc a solar panel manufacturing and

Assignment Solar Co. Inc., a solar panel manufacturing and installation company, has recently encountered several legal issues related to harassment allegations by employees, mistakenly classifying workers as independent ...

1 discuss the value of companies issuing stock options to

1. Discuss the value of companies issuing stock options to senior executives. Are they appropriate compensation, and do they incentivize the executives to act in the best interest of the company? 2. In an era of fusion c ...

Suppose that jj inc has a production rate of 250000 units

Suppose that JJ Inc. has a production rate of 250,000 units per year, and a demand of 800 per day. JJ has a setup cost of $40, and a holding cost percentage of 25%. JJ sells their product for $50, and it costs them $30 t ...

Discuss the career advantages minimum 5 and disadvantages

Discuss the career advantages (minimum 5) and disadvantages (minimum 5) of working in basic types of retail establishments. In addition, based on specific examples, discuss and explain at least 5 steps necessary for orga ...

Make a power point presentation on consutruction project1

Make a power point presentation on consutruction project 1. Project description (1 to 2 paragraphs) 2. Titled dividers for project processes 3. Team members and workload estimates 4. Initiation (description, scope, objec ...

Reflect on the organizational culture at wal-mart in your

Reflect on the organizational culture at Wal-Mart in your opinion, did the company’s goals of quickly gaining a dominant position in Mexico contribute to unethical and possibly illegal behavior by executives in charge of ...

In this essay describe the standard de facto or prescribed

In this Essay, describe the standard (de facto or prescribed) operations in your own organization. Focusing on the areas you are most familiar, explain to what degree they can be considered lean and/or agile. Comment on ...

You are joe campbell oldest son in the campbell and lessing

You are Joe Campbell, oldest son in the Campbell and Lessing families. You have been an integral part of running the family business for ten years. Your dad and mom, James and Sue, rely on you to run the cattle operation ...

Focus on how to improve pay-for-performance by improving

Focus on how to improve pay-for-performance by improving performance measurement, as well as by improving design of our reward systems. Thinking about these issues, address two of the following topics: Measures of perfor ...

1 the use of social media allows training to be on demand

1. The use of social media allows training to be on demand and available when needed. How would you apply the four levels of training evaluation (reaction, learning, application, and financial return) to this type of tra ...

  • 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