### Cost each time a customer orders a dvd player

Assignment Help Accounting Basics
##### Reference no: EM131106522

In the previous problem, assume that it costs \$300 to place an order. The holding cost per DVD player held in inventory per year is \$15. The cost each time a customer orders a DVD player that is not in stock is estimated at \$40. (All demand is backlogged.)

a. Find the optimal ordering policy for parts a and b of the previous problem (when lead time is known for certain and when it is not).

b. How much more is the expected annual holding cost when L is random than when it is known with certainty? Why is this cost greater in the random case?

#### The annual demand for soni dvd players

Suppose the annual demand for Soni DVD players at an appliance store is normally distributed with mean 150 and standard deviation 45. When the store orders these DVD players

#### The drug porapill from the manufacturer of the drug

A hospital must order the drug Porapill from the manufacturer of the drug. It costs \$500 to place an order. Annual demand for the drug is normally distributed with mean 10,0

#### Chicago mercy hospital needs to order drugs

Chicago Mercy Hospital needs to order drugs that are used to treat heart attack victims. Annually, 500 units of drug 1 and 800 units of drug 2 are used. The unit purchasing

#### Reducing the setup cost at compserve

The particular logarithmic function proposed in Example 12.4 is just one possibility for the cost of a setup cost reduction. Referring to the previous problem, suppose inste

#### The store never runs out of cameras and profit is maximized

Reconsider Example 12.1. Each time Machey's orders cameras, it incurs a \$125 ordering cost. Assume that Machey's could make an investment to decrease this ordering cost.

#### Assuming that total dividends declared in 2011

Assuming that total dividends declared in 2011 were \$64,000, and that the preferred stock is not cumulative but is fully participating, common stockholders should receive 2011

#### To backlog some demand but estimates

A car dealer must pay \$20,000 for each car purchased. The annual holding cost is estimated to be 25% of the dollar value of inventory. The dealer sells an average of 500 car

#### Hardware store decides to use the eoq with shortages model

The manager of a hardware store decides to use the EOQ with shortages model to determine the ordering policy for tape measures. Using economic considerations, the manager de