Compute the eoq recommended lot size

Assignment Help Operation Management
Reference no: EM13918429

Assume that a production line operates such that the production lot size model of Section 10.2 is applicable. Given D = 6400 units per year, Co = $100, and Ch = $2 per unit per year, compute the minimum cost production lot size for each of the following production rates:

a. 8000 units per year

b. 10,000 units per year

c. 32,000 units per year

d. 100,000 units per year

Compute the EOQ recommended lot size using equation (10.5). What two observations can you make about the relationship between the EOQ model and the production lot size model?

Text Book: An Introduction to Management Science: Quantitative Approaches to Decision. By David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Camm, James Cochran.

Reference no: EM13918429

What will the annual inventory turnover rate

Johnson Corporation has the following information about a product that carries in stock: Average demand 40 units per day Average lead time 15 days Item unit cost $ 55 for orde

Completion of new product development process

Some organizations involve purchasing after completion of new product development process and some keep purchasing involved throughout the development process. What are the pr

Restructure compensation of sales force to enhance profit

You are a manager of a Door to Door Vacuum Cleaners, Inc. Each salesperson is paid a base salary plus a percentage of revenue she or he generates. In addition, each salesperso

Tom works for large payroll outsourcing firm

Tom works for a large payroll outsourcing firm. One of his key customer’s contracts is set to expire in one month. Competition has heated up in this industry and Tom’s custome

Core culture and elements of its observable culture

Using an organization with which you are familiar, identify its core culture and the elements of its observable culture as defined by Senge. What do you think would need to be

Should xzc accept this offer

Assume that the government wants everyone to be able to afford Lenex. It offers XZC a subsidy of $7 per unit sold if XZC sells Lenex to all 4000 potential customers. Should

Make it significant to understanding international business

Closing Case What Is Next for Chinese Manufacturing? China’s successful industrialization and remarkable economic development in the decades following Mao-Tse Tung’s death in

Targeting of the price-conscious consumer

Southwest, long recognized for its discount airfares and its targeting of the price-conscious consumer, has combined forces with another discount carrier-AirTran. AirTran asse

Reviews

Write a Review

 
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