Combined annual holding and ordering cost

Assignment Help Business Management
Reference no: EM131294281

1. The demand for a particular part called SKU 005 is 2,400 units a year.  The cost of one SKU 005 is $98.00.  It costs $38.00 to place an order of SKU 005, and the holding cost per unit per year is 25% of unit cost.

a. What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005?

b. What is the economic order quantity for SKU 005?

c. The vendor who sells SKU 005 has just offered a 3% discount for orders of 600 or more.  Now how many should be ordered?

2. A carpet cleaning firm uses an average of 48 gallons of cleaning fluid a day. Usage tends to be normally distributed with a standard deviation of 7 gallons during lead time. Lead time is 3 days, and the desired service level is 96 percent. What is the most appropriate reorder point and safety stock level for this carpet cleaning firm?

Reference no: EM131294281

Questions Cloud

The book shabanu daughter of the wind : Do Shabanu's parents make a good decision is regards to her marriage? How so?/Why not? - What do you think of the man that Shabanu will marry? Defend your answer.
How do you personally relate to the music : What, specifically about the sound, lights, and imagery you experienced creates the most affect or is the most memorable to you?How do you personally relate to the music?Describe the specific affects this music and visual imagery had on you followi..
Corporation recognize on the distribution of land to lou : Bud and Lou, unrelated taxpayers, own all of Whose On, Inc.’s stock. Bud owns 60% and Lou 40%. One year before the complete liquidation of Whose On, Bud transfers (a) land (basis: $200,000; FMV $130,000) and (b) equipment In liquidation, Whose On dis..
Statement regarding the tax consequences of this redemption : The adjusted gross estate of Howard Stark, decedent, is $12 million. Included in the gross estate is all of the stock in Stark Munitions, Inc. (E & P of $1.3 million), valued at $4.6 million as of the date of Howard’s death. Howard had acquired the s..
Combined annual holding and ordering cost : 1. The demand for a particular part called SKU 005 is 2,400 units a year.  The cost of one SKU 005 is $98.00.  It costs $38.00 to place an order of SKU 005, and the holding cost per unit per year is 25% of unit cost. a. What is the combined annual..
How much cash will colson distribute to common stockholders : Colson Inc. declared a $160,000 cash dividend. It currently has 6,000 shares of 7%, $100 par value cumulative preferred stock outstanding. It is one year in arrears on its preferred stock. How much cash will Colson distribute to the common stockholde..
Which country does the most good for the world : Based on the video, Simon Anholt: Which country does the most good for the world? (TedTalk, 2014), what is the "good" you see the United States doing in one of the categories?
Open systems view of organizations : Why is the external environment important in the open systems view of organizations?
Providing a synopsis of the article and connections : Write a 2-2½ page double-spaced paper providing a synopsis of the article and connections to the text/course. Please include the title and author of the article that you read and insert a link to the article in your paper. Answer the questions for..

Reviews

Write a Review

 

Business Management Questions & Answers

  Measuring resistance to change

Measuring Resistance to Change

  Recognize good management

She cites an empirical study where 17 well-managed firms and a control group of 17 average firms were followed for 8 years after the former were reported in the press to be "excelling" as far as management is concerned. Is this evidence that the s..

  Should creative advertising meet the clients expectations

Should Creative Advertising meet the client's expectations or risk losing the account? Explain your reasoning. -What does the AMA Statement of Ethics say about truth in advertising?

  Word paper on a new solar car business

Write a 1250 word paper on a new solar car business.  Explain the importance of innovation in your selected business's vision, mission, and values, and determine your business model for this new division. Include the following:

  Advantages of specialized financial institutions

What are the advantages of specialized financial institutions?

  Favor a business which engages in unethical

Explain whether one following virtue ethics would favor a business which engages in unethical, but legal, behavior to make a profit when failing to do so would ensure that the company would not make enough money to support its workforce.

  Development of a customer service training program

which hinges a mid size bar and grill are good inviting customer service and the menus. Menus must be reviewed and customer's reactions to various items/products must be noted and improved.

  Ups store franchise opportunity forecasting

UPS Store Franchise Opportunity Forecasting - Prepare a spreadsheet that forecasts profits, revenues, and costs using the cost model for The UPS Store Franchise Opportunity.

  Homework-supporting a culture of ethical behavior

Please read the "Resolving Ethical Business Challenges" and answer the 3 Questions | Exercises that accompany the case. Your report should be in APA format and each answer should be between 100-200 words supported by evidence in the case and/or ide..

  Explain the lifecycle and the age to be in that lifecycle

Explain the lifecycle and the age to be in that lifecycle and Describe nutritional challenges associated with that particular lifecycle.

  Why bank debited account of calvin

The bank debited Calvin's account. Calvin objected claiming that the bank should not have cashed the check because the check was lost and the check did not belong to Larry. Is Calvin correct? Explain why or explain why not?

  Porter five forces model

a) Evaluate the operating industry of General Mills using a minimum of two forces included within Porter's Five Forces model.

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