Compute the eoq for this product

Assignment Help Business Management
Reference no: EM131251355

A wholesaler encounters a constant demand of 200 cases of one brand and box size of soap flakes per week from his retail accounts. He obtains the soap flakes from the manufacturer at $10 per case after paying the transportation costs. The average cost of each order placed is $5, and he computes his inventory carrying charges as 20 percent of the average inventory value on hand over a 1-year period.

a. Compute the EOQ for this product.

b. Assuming a constant lead time of 5 days for this product, what is the minimum reorder point that will allow the wholesaler to provide 100 percent customer service? Assume 5 operating days per week.

c. Determine the wholesaler's total cost per year for this product.

d. The manufacturer offers the wholesaler a quantity discount of $1 per case for purchasing in quantities of 400 cases or more. Should the wholesaler take advantage of this quantity discount?

Reference no: EM131251355

Questions Cloud

What will the carrying value of the bonds : A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2016. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,144. What will the carrying value of the bonds be on the December 31, 2016 balance ..
Determine the economic order quantity for coal : Determine the economic order quantity for coal assuming 250 workdays per year. - What would be the basis for determining the cost of a coal stockout for Four Corners Power Company?
What is the full cost of the product per unit : Parker and Spitzer Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers: What is the f..
Find the maximum bandwidth that can be permitted : The signal is transmitted over a channel that is absolutely bandlimited to 4 kHz. Assume that the PCM quantizer has 16 steps and that the overall equivalent system transfer function is of the raised cosine-rolloff type with r = 0.5.
Compute the eoq for this product : Compute the EOQ for this product. - what is the minimum reorder point that will allow the wholesaler to provide 100 percent customer service? Assume 5 operating days per week.
Find the maximum pcm bit rate that can be supported : An analog signal is to be converted into a PCM signal that is a binary polar NRZ line code. The signal is transmitted over a channel that is absolutely bandlimited to 4 kHz. Assume that the PCM quantizer has 16 steps and that the overall equivalen..
Describe the behavior of stocks : 1. What is β and why is it important to investors and issuers of stock? Describe the behavior of stocks with βs of greater than one, less than one, and less than zero.
What is the implied cost of backordering a customer : What is the implied cost of backordering a customer? -  What would be the recommended order quantity for a 195HR14 tire with an annual demand of 1,000?
Find the baud rate of the received signal : Multilevel data with an equivalent bit rate of 2,400 bits/s is sent over a channel using a four-level line code that has a rectangular pulse shape at the output of the transmitter.

Reviews

Write a Review

 

Business Management Questions & Answers

  Show discretionary benefits

Do you think changing Superior's time off policies will decrease unscheduled time off and beyond reducing occurrences of unscheduled time off, are there any other benefits to offering PTO?

  Write a program that opens a local file

Write a program that opens a local file C:DataDirectorydata.txt reads in the data into your program without removing the data from the file and appends new data onto the end of the existing data in the program, and then appends the new data onto the ..

  How do you think planning in todays organizations compares

how do you think planning in todays organizations compares to planning 25 years ago?1. how do you think planning in

  Explain challenge in terms of cross-cultural management

What do you think the biggest challenge in terms of cross-cultural management will be in the merger of these two companies? Remember to consider to issues of differences in national cultural values between Japan and the U.S.?

  Government official embarked on a broad campaign

Think of an example, fairly recently, when some group, organization, or government official embarked on a broad campaign to change something in your neighborhood, community, city.

  What advantages might accrue to local competitors

Which lessons from UPS's past history might be helpful in entering the Indian market? Which ones might not be transferable?

  Create a welfares election system

The single project for the form of a Service Request from Huffman Trucking. It is essential for the student to access Service Request-. Create a Welfares Election System.

  Illustrate what difficulties the alpaca farmers will have

Explain illustrate what damages are required to be shown and illustrate what difficulties the alpaca farmers will have in proving them in this case?

  Ethics for life as your source

Using Ethics for Life as your source, Please include intro, conclusion and site all ref's Write a 500- to 750-word essay in which you respond to the following:

  Income taxes payable periods after the acquisition

A value assigned when the acquiree has operating losses in periods prior to the acquisition, the acquirer is able to carry those losses forward to offset its income taxes payable periods after the acquisition

  Illustrate what should he do

Mark is refinishing an antique china cabinet also has already spent $180 on the restoration. He expects to be able to sell the cabinet for $360.

  Management of a department

What role do ethics play in the management of a department, division or organization? How can we ensure managers conduct themselves and their work in an ethical manner?

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