(Answered) Explain how much more expensive is the next lowest cost

Management Studies

Q. Mac-in-the-Box sells computer equipment by mail and telephone order. Mac sells 2,400 flat-bed scanners per year. Ordering cost is $300 and Yearly holding cost is 25 percent of the item's price. There are 300 working days in the year and the lead time is 3 days. The scanner manufacturer offers the following price structure to Mac-in-the Box

Order Quantity Price per Unit
1 to 199 $520.00
200 to 499 $515.00
500 or more $512.00

• Given the above information and basing your decision on the economics, illustrate what order quantity do you recommend that Mac order from the scanner manufacturer? Why?

• Explain how much more expensive is the next lowest cost option?

• For the optimal order quantity, illustrate what is the inventory position immediately after an order is placed?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9309212
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 correctly explains how public opinion impacts

1. Correctly explains how public opinion impacts politics/public policy. 2. Correctly defines all 4 of the main impacts of the media on public opinion (agenda-setting, framing, reinforcement and priming). 3. Provides exa ...

1 what were hyatt hotels corporationrsquos motives in

1. What were Hyatt Hotels Corporation’s motives in expanding its brand portfolio? 2. What are HHC's motives in choosing an internationalization strategy for its lower category Hyatt Place brand? 3. What modes of entry mi ...

Problem statement amp objectiveduring each semester many

Problem Statement & Objective During each semester many students experience great difficulty when looking to put course schedule together. Course offerings are scarce at times, do not fit student schedules many times whe ...

Draw out bpmn processbpmn elements- pools and lanes- tasks-

Draw out bpmn process BPMN elements: - Pools and lanes - Tasks - Gateway - Sequence flows - events When a claim is received, a junior claims officer first enters the claim details into the insurance information system. T ...

1 how can applying the sustainability leggs economic amp

1. How can applying the sustainability leggs : (Economic & Environmental & Social) help in developing the country economy position? 2. Environmental factors that influence the organisation particularly sustainability rel ...

Geico is the number-four us car insurance firm behind state

GEICO is the number-four U.S. car insurance firm, behind State Farm, Allstate, and Progressive yet its $500 million annual budget for marketing communications is by far the industry’s largest. GEICO uses this budget to g ...

Discussion question in your own words and by finding

Discussion Question : In your own words and by finding information in the web, explain the steps and benefits of using a Six Sigma Methodology in a Decision Making Process. Demonstrate your thought using an example of th ...

Develop a specific service recovery process and options for

Develop a specific service recovery process and options for the following situations: 1. For servers at a restaurant: a customer doesn’t like his food. 2. For a cell phone service call center: A customer is disappointed ...

1 name the four stages of the business process management

1. Name the four stages of the business process management cycle and summarize the activities in each. Your response should be at least 200 words in length. 2. Well-developed explanation. Find a local export business and ...

Paper number 1- address the following promptsintroductory

Paper number 1 - address the following prompts. Introductory paragraph to topic (refer to the Final Paper guidelines for your topic selection). Write an introductory paragraph with at least 150 words that clearly explain ...

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