Question what is the effect on eoq and total cost of the, Ask an Expert

Management Studies

Question: What is the effect on EOQ and total cost of the following types of changes for the data in problem 1? a. A 40 percent increase in demand.

b. A 20 percent increase in carrying charge.

c. Use a spreadsheet to study the relationship between lot size and carrying cost.

problem 1

The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics: Sales = 8 cases per week Ordering cost = $10 per order Carrying charge = 20 percent per year Item cost = $80 per case

a. How many cases should be ordered at a time?

b. How often will tea be ordered?

c. What is the annual cost of ordering and carrying tea?

d. What factors might cause the firm to order a larger or smaller amount than the EOQ?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92750494

Have any Question?Write your Review or question?

Related Questions in Operation Management

Nathan is a manager at a company that has made the

Nathan is a manager at a company that has made the difficult decision to downsize. After his company eliminated 100 employees, what must Nathan do to effectively manage his remaining employees and help them through the s ...

Case analysisburger king the national franchise is banned

Case Analysis Burger King, the national franchise, is banned from opening a restaurant within 20 miles of Mattoon, Illinois. So, there is not a Burger King there; no problem, right? Not so fast! In the late 1950s, Gene a ...

Scenario apply the policy analysis model and ideas

Scenario: Apply the policy analysis model and ideas regarding sweatshops from the readings to a prominent recent case in Bangladesh. Briefly stated, a number of American and European firms which sell clothes have been bu ...

1 use the internet to compare licensed vs unlicensed sports

1. Use the internet to compare licensed vs. unlicensed sports merchandise. How to the products compare in terms of quality, selection, price and availability? Would you purchase unlicensed sports merchandise for your fav ...

1 how does mcdonalds handle their expatriate managers and

1. How does Mcdonalds handle their expatriate managers and does McDonalds have any expat issues or challenges? 2. Is technical standards important in the (Kroger) supermarket chain industry? if so waht are they? 3. Is Kr ...

1 what do you think interstate bakeries should do and

1. What do you think Interstate Bakeries should do and identify the pros and cons of your recommendation. 2. Data presentation should be designed to display correct conclusions. What issues should we think about as we pr ...

1 write a four paragraph movie analysis on the film gung ho

1. Write a four paragraph movie analysis on the film "Gung Ho", a 1986 comedy film. Note: it must be based on a marketing perspective 2. Find a company that has executed a global expansion strategy taking advantage of th ...

Scenarioin 2010 a new director of soba arrived on campus

Scenario: In 2010, a new director of SoBA arrived on campus. After spending the first 2 ½ to 3 years of getting the on-campus "house in order", she began to focus her attention on the academic component of the online gra ...

Coping with problems joe is a little nervous he has just

Coping With Problems Joe is a little nervous. He has just been transferred from another plant to take over a production line. Production is down and there is a serious problem with absenteeism. To make matters worse, the ...

Nhin direct onc keeps it simple in effort to jumpstart data

NHIN Direct: ONC Keeps It Simple in Effort to Jumpstart Data Exchange: The federal government is creating a stripped-down version of the nationwide health information network to aid the meaningful use program. Discuss th ...

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