The annual demand ordering cost and the annual inventory, Ask an Expert

Management Studies

The annual demand, ordering cost, and the annual inventory carrying cost rate for a certain item are 600 units, $20/order and 30% of item price, respectively. Price is established by the following quantity discount schedule.

Quantity: (1 to 49 ) (50 to 249 ) ( 250 and up )

Price :( $5.00 per unit ) $4.50 per unit $4.10 per unit

What should the order quantity be in order to minimize the average annual cost? Also, show the minimal average annual cost.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93063955

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 what has been the financial impact of the transportation

1. What has been the financial impact of the transportation industry at an industry and organizational level? 2. Describe briefly and in your own words the Coca-Cola brand. 3. By considering the textbooks example for ris ...

Organisation development and change assignment - critical

Organisation Development and change assignment - Critical Essay Your task is to compare Singapore and Australia in terms of Hofstede's cultural dimensions, and then discuss how national culture influences French & Raven' ...

1 research at least two articles on the topic of

1. Research at least two articles on the topic of Information systems infrastructure: evolution and trends. Write a brief synthesis and summary of the two articles. How are the topics of the two articles related to the t ...

Best buy is the largest consumer electronics retailer in

Best Buy is the largest consumer electronics retailer in the United States, accounting for 19 percent of the market. Globally, it operates around 4,000 stores in the United States, Canada, Mexico, China, and Turkey. Its ...

Refer to the five competitive forces porters five forces

Refer to the five competitive forces (Porter's Five Forces) that determine industry profitability. Are some industries more profitable than others? If so, give an example of a profitable industry and a not-profitable ind ...

1 think about a healthcare organizationclinic create a

1. Think about a healthcare organization/clinic. Create a discipline and termination procedure and then analyze what is missing and how you would modify the procedure to make it more effective. 2. Which type of written c ...

Values i have- annual demans 29760- weekly demand 572

Values I have: - Annual Demans: 29,760 - Weekly demand: 572 units - 12.3 Standard Deviation - Holding: .15 What I need to figure out: Thesupplier has a lead-time of 2 weeks. The company would like its Cycle Service Level ...

1 a retail outlet sells holiday decorations for 10 per bag

1. A retail outlet sells holiday decorations for $10 per bag. The cost of the product is $8 per bag. Any units not sold during the selling season can be sold for $5 a bag at the end of the season. Assume that demand for ...

Question which of the following strategies do you think has

Question : Which of the following strategies do you think has the most influence on creating a positive work environment, leading to greater job satisfaction and job performance? Please include a brief response to suppor ...

Look for and find any text of a speech that was given by

Look for, and find any text of a speech that was given by someone in USA who uses figures of speech liberally. Pick one or two paragraphs that are rich in figures and rewrite them, eliminating every bit of figurative lan ...

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