Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Hartman Electronics is a small retail electronics store. Among the items they sell are two different DVD players from a particular manufacturer. There is a base model and a deluxe model. They are planning inventory orders for the next three months; they place orders with the manufacturer on the first of each month. The anticipated demand over the next three months is represented in the following table:

BaseDeluxe

                                                          Month                Model                 Model

                                                          April                    400                      300

                                                          May                     700                      400

                                                          June                    375                      325

The manufacturer can provide Hartman with up to 500 Base model DVD’s each month at a price of $65 apiece. Anything beyond 500 will require a different production process, so the cost will go up to $70 apiece. The manufacturer can provide Hartman with up to 300 Deluxe model DVD’s each month at $90 apiece. Anything above 300 will cost $96 apiece, for the reasons stated above. Hartman can order more than enough units to cover anticipated demand in one month, and hold the excess units in inventory to help satisfy demand in a subsequent month. Hartman estimates an inventory holding cost of $2.00 per unit, of either model, from one month to the next. Hartman is limited to holding no more than 100 total DVD’s from one month to the next.

Formulate a linear program that will help Hartman to determine the order schedule that will allow him to minimize the cost of obtaining enough DVD’s to satisfy demand.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93112028

Have any Question?


Related Questions in Operation Management

1 what implications does the concept of mementos have for

1. What implications does the concept of mementos have for marketing strategy? 2. Describe the functions of a Project Management Office (PMO) in an organization and the responsibilities of a Project Review Committee (PRC ...

When looking at the c-level positions that are associated

When looking at the C-Level positions that are associated with Information Technology what are the certifications and various levels of education that would be needed to obtain such a position. Would a person in one of t ...

There has been a lot written about corruption and bribery

There has been a lot written about corruption and bribery issues especially in the State of New Jersey. One recent case involves a Port Authority executive. Please find some articles regarding corruption and bribery case ...

1 best way to describe the process of persuasion ie

1. Best way to describe the process of persuasion, i.e., describe how people get others to agree with their point of view. 2. Services differ from products in several important ways. Describe the distinctive characterist ...

Pto policies have become good tools for hr staff to use in

PTO policies have become good tools for HR staff to use in terms of organizational incentives. Use the library and read about PTO policies. While reviewing the information from the two merged companies, the HR Director h ...

1 which core competencies of human resource management do

1. Which core competencies of human resource Management do you anticipate needing tomorrow? 2. What are the criteria to measure enterprise performance that are provided by Balance Scorecard? 3. Evaluate Price Waterhouse ...

A truck stop along the interstate uses fuel pumps that

A truck stop along the interstate uses fuel pumps that operate at 6 gallons per minute. The service volume is 200 trucks per day and the truck stop operates? 24/7/365. It has been determined that the average purchase is ...

Abbott tool company has been manufacturing and selling

Abbott tool company has been manufacturing and selling electric drills, saws, and sanders for over 50 years. their headquarters and main manufacturing plant are located in Oxnard, California. About 50 people work at this ...

1 suppose that johnrsquos faulty driving causes an accident

1. Suppose that John’s faulty driving causes an accident that injures another driver, Ben. Ben was not at fault in his driving, but he was not wearing his seat belt, and this fact aggravated his personal injury. Discuss ...

Dubai government has signed an agreement for construction

Dubai government has signed an agreement for construction of a 228,000 sq. ft. electronics and specialised waste recycling plant at Dubai Industrial Park by December 2018. The construction will cost 3m AED and ongoing op ...

  • 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