According to the eoq formula

Assignment Help Business Management
Reference no: EM131315099

One of the products stocked by Joe's Club is JoesCola, which is sold in cases. The demand level for JoesCola is highly seasonal.

During the slow season, the demand rate is approximately 650 cases a month

  • During the busy season, the demand rate is approximately 1300 cases a month
  • The cost to place an order is $5, and the yearly holding cost for a case of JoesCola is $12.

(a) According to the EOQ formula, how many cases of JoesCola should be ordered at a time during the slow season? How many cases of JoesCola should be ordered during the busy season?

(b) Suppose Joe's Club decides to use the same order quantity throughout the year, resulting in an order quantity of 150 units. Calculate total holding and ordering costs for the year. Do not consider safety stock in your calculations. To do your calculations, annual demand can be calculated as an average of the slow and busy rates given above

Reference no: EM131315099

Questions Cloud

List the two primary forms of business franchises : List the two primary forms of business franchises. Which is the simpler form? Which form requires the most complex business relationship
Discuss the capital costs and required capacity factor : Research and build a data file including 24 h of electrical demand data for 30 residences, 15 shops, and 5 factories, along with some wind speed data.
Determine the resources needed to undertake the project : This might be a new cake, biscuit or type of bread. Determine the resources needed to undertake the project. Explain how you would go about sourcing and accessing these resources.
How much should you be willing to pay for this stock : A firm expects to pay dividends at the end of each of the next for years at $2, $1.50, $2.5 and $3.5. After year 4 growth is expected to be constant at 8%. If you require a 14% rate of return how much should you be willing to pay for this stock?
According to the eoq formula : According to the EOQ formula, how many cases of JoesCola should be ordered at a time during the slow season? How many cases of JoesCola should be ordered during the busy season?
Briefly state the significance of the coincident peak : From these data, identify the coincident peak and briefly state the significance of the coincident peak. What is the significance of this piece of information to a system planner?
Describing the accounting implications : Frustrated by high property tax rates, resident in the Village of Williamsville voted to dissolve their village government, instead agreeing to receive similar services from their county government, Erie County. No consideration must be paid by (or t..
Calculate the molar heat capacity at constant volume : Taking into account translation, vibration, and rotation, calculate the Helmholtz function.
Draft a letter to the supervising attorney : Review the case file titled "Hilary Case," found below these instructions. Describe two (2) issues that would cause you to reach out to the supervising attorney for help. Draft a letter to the supervising attorney in which you recommend the settlemen..

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd