Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

The local technology store WiredIn hired you to manage their inventory, which consists of 2 products configurations, type L and type J. Below are the data for the products. The holding cost is 24% of the unit costs. Product Type L Type J Demand per year 48000 (units) 72000 (units) Unit Cost $50 $85 Ordering Cost $125/order $125/order A. Use the economic order quantity model to determine the order size for both products. B. Calculate the total relevant cost associated with the EOQ calculated in part (A) C. Assume that the real ordering cost is $200 instead of $125. How large are the additional relevant costs incurred by the bad estimate of the ordering cost for Type J? D. If WiredIn chooses to order 1300 of Type L instead of the EOQ, calculate the percentage cost error of this order size. E. Calculate the best order quantity for Type J assuming that WiredIn gets a 40 percent discount on the entire order if they order more than 1500 units. F. Assume that each unit occupies 0.10 cubic foot of space, for which WiredIn figures it costs them $2 per year per cubic foot. Calculate the best order quantity under these circumstances for Type L (assuming no quantity discounts in this part of the question). G. One of the managers is trying to understand the reasons for the high cost of ordering. He wonders how low the ordering cost (A) must become for the EOQ to equal one unit. What is your response for Type L? (assuming no quantity discounts and no space costs)

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M9605372

Have any Question?


Related Questions in Operation Management

1 suppose you are a human resource professional at a

1. Suppose you are a human resource professional at a company that is setting up work teams for production in sales. What group incentives would you recommend to support this new work arrangement? 2. A device may be purc ...

1 what is the main ldquohigh classrdquo problem which apple

1. What is the main, “high class” problem which Apple management must address? Generating excessive cash is a sign of business success, so why is having it a problem? 2. Should Apple give Einhorn and their largest shareh ...

1 some customer support call center let incoming callers

1. Some customer support call center let incoming callers know how long they would be on hold before talking to a service agent. This improves customer experience because: it lessens the perception of unfairness in waiti ...

1 how can less advertising be preferred to more advertising

1. How can less advertising be preferred to more advertising by Google? Are there other places such an approach could be effective? How could it be measured? 2. If you were to introduce a new product today to Global Mark ...

First select one of the four perspectives of the balanced

First, select one of the four perspectives of the balanced scorecard model (Financial, Customer, Internal Business Process, or Learning and Growing). With that perspective in mind, discuss its importance within healthcar ...

1 country of origin can strongly influence a firmrsquos

1. Country of origin can strongly influence a firm’s approach to organization structure. As MNEs from China and India internationalize, to what extent are they likely to differ from Japanese, European, and U.S. MNEs? 2.  ...

Write a 1500-word paper on the followinga describe the

Write a 1,500-word paper on the following: A. Describe the current health care environment in the United States from both the health care administrator and the patient perspective. B. What are some recent changes in legi ...

1 how do you look at the role of nonprofit media

1. How do you look at the role of nonprofit media organizations in Western countries and in sub-Saharan African countries? 400 words 2. What information do you need to calculate a student’s VLC for Amazon while he/she is ...

1 travis works as a fire fighter his top priorities are

1. Travis works as a fire fighter. His top priorities are maintaining safety equipment and protecting himself from physical and economic harm. Recently, he even bought life insurance with income protection in the event t ...

1 if the scope of effort of a project changes during

1. If the scope of effort of a project changes during execution of activities, what should be the role of the functional manager? 2. Argue why it is important for managers to pay attention to demographic trends and shift ...

  • 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