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 $21 to $4.75 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.

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

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.)

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.:- M92586675

Have any Question?Write your Review or question?

Related Questions in Operation Management

You have a job assisting the medical director at a family

You have a job assisting the Medical Director at a Family Medical Clinic in New York City. The Medical Director is concerned about the long wait times of patients visiting the clinic and would like to improve operations. ...

Why is agency law especially important in the business and

Why is agency law especially important in the business and government context? What are the five types of agents? What distinguishes an employee from an independent contractor? Why do employers frequently try to pass off ...

Assignment discussion-value of moneybusiness decisions are

Assignment: Discussion-Value of Money Business decisions are based on the time value of money. Bonds, stocks, loans, and other business investments are valued by determining the present value of an expected cash flow, wh ...

Use the five-step decision making is shown in the answeryou

Use the FIVE-STEP decision making is shown in the answer. You are manager of IT project that involves two dozen offshore outsource worker who will do program development and testing. IDENTIFY several potential issues tha ...

1 what questions would you ask your prospective employer

1. What questions would you ask your prospective employer concerning the salary and/or benefits? Describe the benefits package you would try to negotiate for yourself. 2. How do you design a quality control program? 3. B ...

1 do you think that culture is important to organizational

1. Do you think that culture is important to organizational performance? Why or why not? 2. How do you learn about prospective employer’s cultures? How important is a company’s culture to you when you decide to apply or ...

Each question two paragraph 500 wordswhat type of

Each Question (Two paragraph 500 words) What type of industries could working from home benefit? What problems can occur with working from home? As a manager, how would you manage employees working from home?

1 which of the following is not an inherent risk associated

1. Which of the following is not an inherent risk associated with inventory? Inventory accounts typically have a high volume of activity. Inventory is easily transportable Inventory may become obsolete. Inventory costing ...

1 what does it mean to have a patient customer in a waiting

1. What does it mean to have a patient customer in a waiting line? 2. What in your opinion is the potential impact of stricter privacy laws in social media on Facebook, Twitter profitability and users? Discuss three impa ...

Explain and discuss how a major hurricane like irma may

Explain and discuss how a major hurricane like Irma may affect McDonald’s environmental, social and economic (triple bottom) sustainability practices What are these practices? Discuss the effects of Irma with respect to ...

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