Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Consider an Construction service company(CSS) that stocks a specific type of compressor, which they source from an candain supplier. Since this compressor is the only product that CSC sources from that specific supplier, and given relatively steady demand of 2,000 compressors throughout the year, CSC uses a Continuous Review (Q) system for managing the inventory of this compressor. Orders to replenish stock requires administrative and other work that is estimated to be $40 per order. The compressors are purchased from the supplier for $325 each. It is estimated that annual inventory holding costs are 22% of the value of the item. The time from when an order is placed with the supplier until it arrives averages three weeks (including time to clear customs). What is the order quantity that CSC should use for these compressors if they wish to minimize total annual holding and ordering costs?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91638985

Have any Question?


Related Questions in Operation Management

1 give examples of cases about adaptive and generative

1. Give examples of cases about Adaptive and Generative Techniques in the application of family products in industry. Explain the advantages and disadvantages of the two concepts. 2. Survey and explain the technologies u ...

1 under the objective theory of contracts a contract could

1. Under the objective theory of contracts, a contract could result from an offer in which of the following circumstances: - Where the offer was clearly made as a joke. - Where the offer was clearly made in a state of ex ...

1 what do you believe are additional reasons to support the

1. What do you believe are additional reasons to support the statistic that 70% of the family businesses fail or are sold before the second generation ownership gets a chance to succeed? Discuss why next-generation famil ...

1 michael porter defines three basic strategies cost

1. Michael Porter defines three basic strategies cost leadership, differentiation, and focus. Describe each explain under what conditions each works, and what the pitfalls are of each one. 2. Describe core competencies a ...

Truefalse1 random variation is also referred to as

TRUE/FALSE 1) Random variation is also referred to as uncontrollable variation________ 2) X chart is an example of a variables chart ________ 3) The R chart is a process chart used to monitor the average of the character ...

A report on state of information technology as of now

A Report on State of Information Technology As of now, technology is playing a major role in the field of health care. From the computerisation of medical records to the complex operations, technology has its hand in eve ...

A 14-year old patient was seen at your hospitals er after a

A 14-year old patient was seen at your hospital's ER after a car accident. The patient’s parents make it clear to the staff that they are not willing to give consent to any procedure involving blood products or transfusi ...

1 there are instances in which a marketing researcher wants

1. There are instances in which a marketing researcher wants to see if there is a relationship between the responses to one question and the responses to another question in the same survey. Identify the four types of po ...

1 what is a placeholder where word inserts content in a

1. What is a placeholder where Word inserts content in a document? 2. What systems do health plans to improve their ability to detect fraud 3. What are defenses to charges of wrongful interference with the business right ...

We are doing an international project for a class where we

We are doing an international project for a class, where we have to choose a global product and introduce it to a foreign country, for this project we have decided to use the brand of '' Bimbo '' (the brand of bread), we ...

  • 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