You manage a product with demand rate of 1600 units per, Ask an Expert

Management Studies

You manage a product with demand rate of 1600 units per year. The fixed order cost is $10, and the variable purchasing cost is $4 per unit. You calculate holding cost at $0.80 per unit per year. EOQ=200 units

Suppose your supplier offers the following incremental order discount: If you order more than 250 units, the purchase cost for units ordered above 250 is decreased to $3.80; the first 250 units still cost $4 each. Does you order quantity change? If yes, what is the new quantity? Does your yearly cost change, and by how much if so?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92034262

Have any Question?Write your Review or question?

Related Questions in Operation Management

Report to management formatmkgp has just introduced a new

Report to Management Format. MKGP has just introduced a new product line. It is considering three options regarding its new product line: (1) subcontract, (2) expand existing facility, or (3) build a new facility. A cons ...

1 should marketers be concerned about offending one market

1. Should marketers be concerned about offending one market segment when trying to reach another? 2. Prepare a fish-bone chart explaining how a pizza delivery can arrive late on a Friday or Saturday. 3. Choose criteria f ...

You are the manager of a small manufacturing plant the

You are the manager of a small manufacturing plant. The union contract covering most of your employees is about to expire. Discuss how to prepare for union contract negotiations? Two Paragraph covering the Bargaining sta ...

1 what was the business-level strategy in the online sales

1. What was the business-Level strategy in the Online Sales Business Division, Amazon in 2016? What was the structure in the Online Sales Business Division, Amazon 2016? Was there a fit between the strategy and structure ...

Question why is it important for a leader to be able to

Question : Why is it important for a leader to be able to manage across cultures? Communicate your thoughts on the following statement: "Leaders who cannot understand cultural differences in people cannot lead or manage ...

The mcdonalds case offers us a view on many issues what is

The McDonalds case offers us a view on many issues. What is our brand identity? Who are our target customers? Why do those customers buy? Let’s first look at each from three perspectives: McDonalds in the early Kroc year ...

Amber briggs looked nervously at her watch as she sat at

Amber Briggs looked nervously at her watch as she sat at the front of a large table in the cafeteria at Kerzner Office Equipment. It was now 10 minutes after 3:00 and only 10 of the 14 members had arrived for the first m ...

The chapter specified some of the changes in the external

The chapter specified some of the changes in the external environment that can provide business opportunities (technological discoveries, lifestyle and taste changes, and so on). Identify some recent changes on current t ...

1 describe the theory of ppp - purchasing power parity2

1. Describe the theory of PPP - purchasing power parity 2. Describe a International Global operations and supply chain for McDonald's 3. How should immigration law be reformed? Does the United States have any ethical dut ...

Starbucks is a relatively new brand allegedly created

Starbucks is a relatively new brand, allegedly created without any advertising. Do some research (on Google, for example) to try to find out how the brand was built. What are the lessons for other new brands? Pick a stro ...

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