Ask Business Management Expert

Consider a convenience store that is open 24/7 and stocks paper towel rolls. Each roll of paper towels sells for $2.25. The paper towel vendor sells the convenience store rolls based on the quantity purchased. The purchase price for the store is $1.25 if the order quantity is less than 500 rolls, $1.15 if the order quantity if at least 500 rolls but less than 1000 rolls, and $1.05 is the order quantity if 1000 rolls or greater. The average demand for paper towel rolls is 12.5 rolls per day, and stays at this rate throughout the year. The ordering cost is $15 per order and the annual holding cost rate is estimated to be 35%.

a. If the company used a fixed order quantity model, calculate the optimal economic order quantity (EOQ). Show all work.

b. About how often will orders be placed (in days)? Show all work.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M93112947

Have any Question? 


Related Questions in Business Management

Discuss the following question studies indicate that good

Discuss the following question: Studies indicate that good leaders are typically positive and enthusiastic. In what ways do the tips cited in the vignette suggest the possession of these qualities by the various leaders ...

Distinguish between secondary and primary methods of data

Distinguish between secondary and primary methods of data collection. Is it possible to use secondary data methods as substitutes of primary methods? Justify the answer with suitable illustrations and using data from dif ...

Consider jeffersons trade embargo the napoleonic wars and

Consider Jefferson's trade embargo, the Napoleonic Wars, and the War of 1812. What likely was their largest effect on U.S. manufacturing? a. The rise of U.S. manufacturing was delayed because of weak world demand for iro ...

What could be potential barriers to communication with

What could be potential barriers to communication with clients? How can you deal with those barriers?

Explain how understanding your personal learning style can

Explain how understanding your personal learning style can assist you when identifying, evaluating and selecting development opportunities.

Describe the components of the team-building cycle and why

Describe the components of the team-building cycle and why it is important to understand each phase. In addition, select one of the six stages and provide a personal/professional example of how you or a current/former le ...

Describe how the functions of information systems support a

Describe how the functions of information systems support a company. Compare the roles of programmers, systems analysts, information systems managers, the information director (CIO), the security director (CSO), data dir ...

What happens to the least cost ration if the price of both

What happens to the least cost ration if the price of both of it's feed ingredients doubles?

Explain how amazon and walmart companies use information

Explain how Amazon and Walmart companies use Information and Communication Technologies (ICT) in their competitive strategies. Highlight the differences in their use of ICT.

The business world today is increasingly complex and

The business world today is increasingly complex and variable in virtually every country and industry. Thus, organizations must become more organic. How do you define an organic organization and a mechanistic organizatio ...

  • 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