Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Project Management Expert

Ergonomics Inc. sells ergonomically intended office chairs. The company has following information:

Average demand = 54 units for each day
Average lead time = 30 days
Item unit cost = $60 for orders of less than 250 units
Item unit cost = $58 for orders of 250 units or more
Ordering cost = $23
Inventory carrying cost = 20%
The business year is 260 days.

Suppose there is no uncertainty at all about the demand or lead time.

1. Evaluate EOQ if unit cost is $60 and $58.

Unit cost at 60?
Unit cost at 58?

2. Compute annual ordering costs for each alternative?

Unit cost at 60?
Unit cost at 58?

3. Compute annual inventory carrying costs for each alternative?

Unit cost at 60?
Unit cost at 58?

4. Compute the annual product costs for each alternative?

Unit cost at 60?
Unit cost at 58?

5. What will be the total costs for each alternative?

Unit cost at 60?
Unit cost at 58?

6. How many chairs must the firm order each time?

Order quantity of chairs?

7. How much the firm can save through placing the order?

Project Management, Management Studies

  • Category:- Project Management
  • Reference No.:- M914790

Have any Question? 


Related Questions in Project Management

Starbucks products create a unique coffee

Starbucks' Products Create a Unique Coffee Experience Starbucks was founded in 1971 by three partners in Seattle's renowned open-air Pike Place Market and was named after the first mate in Herman Melville's Moby Dick. Ho ...

This assignment should meet the following learning

This assignment should meet the following learning outcomes: 1. Demonstrate knowledge and understanding of Project Management Principles including how to define the project. 2. Evaluate the strategies and understand the ...

Projectoverviewdevelop a microsoft excel application that

Project overview Develop a Microsoft Excel application that provides support for decision making. The application must be useful to someone, which means it needs to help someone analyze data and make appropriate decision ...

In october 2010 boeing announced a record charge of 11

In October 2010, Boeing announced a record charge of $11 answer below »In October 2010, Boeing announced a record charge of $1 billion related to delays in delivering its new Dream liner 747 8 jumbo jet. As an investor w ...

He has heard of eoq as a basis for setting the length of

He has heard of EOQ as a basis for setting the length of production runs. What values should he assign to cp and cH for his operations?

Pect 1-21 titletechnology management plan2

Project 1-2 1. Title Technology Management Plan 2. Introduction You have been selected to be the acting CIO for a subsidiary of Largo Corporation called Rustic Americana. Its primary products include arts and crafts that ...

1 what factors influence a buyers willingness to spend2

1. What factors influence a buyer's willingness to spend? 2. What are the goals of the Federal Trade Commission? List the ways in which the FTC affects marketing activities. Do you think that a single regulatory agency s ...

1creating opportunities discussionexplore the value of

1.CREATING OPPORTUNITIES DISCUSSION Explore the value of regarding problems as opportunities for teams. Instructions Teams must be equipped to address problems as they arise. If handled effectively, problems can become o ...

Project management assignment1 the following table shows

Project Management Assignment 1) The following table shows the allocation of work assignments and resources needed for an investment firm to make a decision on investing in company XYZ.   Task A Task B Task C Prtfolio Ma ...

1 leadership value discussionexplain the importance of a

1. LEADERSHIP VALUE DISCUSSION Explain the importance of a team leader. Instructions A team leader must organize the members and distribute the necessary tasks. Team leaders are responsible for supervising the team and a ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen