As a result of many process improvements and it, Ask an Expert

Management Studies

As a result of many process improvements and IT implementations (like EDI), Big Box-Mart has been able to reduce its order costs from $22 to $5.25 when purchasing cases of paper towels from its main paper-products supplier. Annual demand is expected to be 140,000 cases and annual holding costs are 3.50 per case.

a. Based on this information, what will be the new optimal order quantity (using the reduced ordering cost)? (Display your answer to two decimal places.)

b. When using the reduced ordering cost, as compared to the original ordering cost, by how many cases will the average inventory go down? (Display your answer to twodecimal places.)

c. What will be the annual total combined savings to ordering costs and holding costs when using the reduced order cost, as compared to the original ordering cost? (Display your answer to two decimal places.)

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92583090

Have any Question?Write your Review or question?

Related Questions in Operation Management

From 2006 through 2009 the irs was allowed to enter into

From 2006 through 2009, the IRS was allowed to enter into contracts with private collection agencies (PCAs) to assist in the collection of delinquent federal tax liabilities. Beginning September 7, 2006, the IRS began as ...

1 why should organizations help individual manage stress

1. Why should organizations help individual manage stress? Isn't stress the individual's responsibility? 2. Does more stress occur today than in past generations and what evidence is available concerning this question? 3 ...

1 explain the concept of virtual network structure and

1. Explain the concept of Virtual Network Structure and provide examples. 2. What is Customer Lifetime Value? Why is it important? 3. What are “Facilitating Goods”?. 4. Explain the concept of Globalization Strategy and p ...

You are a subcontractor to company z who in turn is the

You are a subcontractor to company Z, who in turn is the prime contract to company Q. Before any design review or technical interchange meeting, company Z requires that they review all material to be presented both in-ho ...

Nathan and caroline are ecologists interested in the field

Nathan and Caroline are ecologists interested in the field of mushrooms. They have recently discovered a new species of mushroom called the ‘Amanita’ which is deep red in colour with white flecks. The mushroom has been c ...

A part of new product launch strategy includes creating the

A part of new product launch strategy includes creating the product or service name. Address these questions: In general, how does the product name affect and interact with other new product launch concerns? What are two ...

Discussion per the textbook to eliminate or reduce

Discussion : Per the textbook, to eliminate or reduce non-value-added work is a core step in improving profitability or efficiency of the business process. Give your opinion on whether or not you agree or disagree with t ...

What is the role of leadership with respect to

What is the role of leadership with respect to globalization? Discuss the types of knowledge and behaviors that an organization would need to be a successful leader in the global arena. Remember that you must use citatio ...

1 a 27 year old woman is at your facility giving birth she

1. A 27 year old woman is at your facility giving birth. She is being induced early because her blood pressure is sky-high (pre-eclampsia) and the only way to reverse the event is immediate delivery. The delivery goes fi ...

1 one disadvantage of having a strong organizational

1. One disadvantage of having a strong organizational culture is that a. a strong culture tends to be difficult to change. b. the organization's goals are not as clear c. the organization needs more monitoring and superv ...

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

Recent Questions

Ask Operation Management Expert