Question a bicycle manufacturer produces 75 bicycles per, Ask an Expert

Management Studies

Question: A bicycle manufacturer produces 75 bicycles per week. It buys the tires from a supplier at a cost of $20 per tire, and it costs the company $120 to place an order. Holding costs are based on purchasing costs and a weekly interest rate of 2%.

(a) Determine the optimal number of tires for the company to order at one time, and the time between orders in weeks. Keep in mind that a bike uses two tires.

(b) What are the yearly holding and fixed order costs for this item? (Assume 50 working weeks in a year). Suppose the CEO asks you to place the tire orders every month, two months, or four months, to coordinate with other shipments. Assume one month has four weeks.

(d) How much does this add to the total cost compared to the optimal order cycle?

View complete question

Management Theories, Management Studies

Category:- Management Theories
Reference No.:- M92633353

Have any Question?Write your Review or question?

Related Questions in Management Theories

A how can use the criteria for evaluating alternative

a) How can use the criteria for evaluating alternative methods of government finance to assess the most important revenue proposals of the 2018/19 budget. b) In the case tax is most important revenue proposals of the 201 ...

Show your work i already have my own answer and am trying

Show your work! I already have my own answer, and am trying to compare for accuracy. Graph needs to be included. Most graduate schools of business require applicants for admission to take the GMAT, the Graduate Managemen ...

Final reflection-preparing for final assignmentthroughout

Final Reflection- Preparing for Final Assignment: Throughout the course, numerous topics on healthcare management have been discussed. Reflecting on the different discussions, readings, assignments, and your previous cou ...

Assignmentlearning outcome recognize the impact of

Assignment Learning Outcome: Recognize the impact of organizational culture on shaping values, attitudes and behavior. Case Study: Foundations of Individual Behavior Differing Perceptions at Clarkston Industries Susan Ha ...

Three friends tom jerry and mary were having coffee in the

Three friends, Tom, Jerry and Mary were having coffee in the GOSSIP CAFÉ and were discussing their job prospects. Tom told his mates that he has just resigned from his current job because he worked long hours and did not ...

Questions -1 choose an industry and then use the library or

Questions - 1. "Choose an industry and then use the library or the Internet to find data from secondary sources that will be highly useful in developing a marketing plan." Start thinking of the industry that relates to t ...

Assume that a perfectly competitive firm has the following

Assume that a perfectly competitive firm has the following revenue and cost functions: TC= 5625 +5Q + 0.01Q^2 AVC=5 + 0.01Q MC=5 + 0.02Q TR=20Q A) what is the level of output that maximizes profits, if any? Compute profi ...

Discussion - this discussion deals with the important topic

Discussion - This Discussion deals with the important topic of whether money is a motivator for increased job performance and satisfaction. Look at your own history of how you have been compensated, what problems you saw ...

Df or computer forensics cf laboratory and what actually

(DF) or computer forensics (CF) laboratory and what actually one would find in a lab. Trust me, there are many different artifacts surrounding the DF/CF lab. After you find the article, you are to write a short 1-2 repor ...

Assignment -instructions - please follow instructions for

Assignment - Instructions - Please follow instructions for all for Personal Learning Journal. And each personal learning journal should be of 300words. Each student will keep a personal journal to reflect and record thei ...

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 Management Theories Expert