Millennium liquors is a wholesaler of sparkling wines their, Ask an Expert

Management Studies

Millennium Liquors is a wholesaler of sparkling wines. Their most popular product is the French Bete Noire which is shipped directly from France. Weekly demand is for 50 cases. Millennium purchases each case for $125, there is a $325 fixed cost for each order (independent of the quantity ordered) and their annual holding cost is 25 percent.

a. What order quantity minimizes Millennium’s annual ordering and holding costs?

b. If Millennium chooses to order 300 cases each time, what is the sum of their annual ordering and holding costs?

Round answer to 2 decimal places.

c. If Millennium chooses to order 125 cases each time, what is the sum of the ordering and holding costs incurred by each case sold?

d. If Millennium is restricted to order in multiples of 50 cases (e.g., 50, 100, 150, etc.) how many cases should they order to minimize their annual ordering and holding costs?

e. Millennium is offered a 5% discount if they purchase at least 1,000 cases. If they decide to take advantage of this discount, what is the sum of their annual ordering and holding costs?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92543321

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 mission and objectives visit the corporate website of

1. Mission and objectives, visit the corporate website of Under Amour. Define the firm’s mission and objectives, and discusd how it’s brands and activities support both. 2. Please explain (in 50 – 100 words), Unrelated D ...

What are some of the issues that canadian companies need to

What are some of the issues that Canadian companies need to consider when pondering foreign acquisitions and mergers? Find a company that may have this type of issue or has a history of a merger. The answer should in mor ...

A poll was recently taken on a college campus to ascertain

A poll was recently taken on a college campus to ascertain if students think we should get out of Afghanistan. A simple random sample of 1535 students was obtained. Out of the 1535 students surveyed, 833 indicated that t ...

A what is nutrimentrsquos competitive business strategy

A. What is Nutriment’s competitive business strategy (refer to a previous chapter on strategic planning)? Justify your answer. Explain how this strategy impacts the price of Nutriments products and how that impacts compe ...

1 in what ways is your bank of america environmental

1. In what ways is your Bank of America environmental sustainability strategy in the best long-term interest of shareholders? Does it contribute to your company’s competitive advantage or profitability? 2. What are two r ...

Operations and supply chain management 1operations

OPERATIONS AND SUPPLY CHAIN MANAGEMENT 1. Operations management and supply chain management activities: a. are independent of the production and delivery of services and goods. b. are related to the delivery of services ...

1 what are the primary differences between job evaluations

1. What are the primary differences between job evaluations and job descriptions? What are each used for and what are some of the potential legal issues associated with both? All resources should be cited according to AP ...

Establish and adjust the marketing mix write 300 words

ESTABLISH AND ADJUST THE MARKETING MIX. Write 300 words explaining what product information you will need and how this information will assist with the development of the marketing plan. The organisation for which you wo ...

Must be 300 wordsmust have referencedo not answer the

Must be 300 words Must have reference Do not answer the question if you cant follow the instructions Health reform has leveraged Medicaid for a significant part of the expansion. Is this good public policy? Why or why no ...

Data and information managementsuppose you have decided to

Data and Information Management Suppose you have decided to interview for a newly created position in your company (gov., non-profit, law firm, etc. or you can choose a company). The position is Chief Data Officer. You f ...

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