Minimize the sum of annual ordering and carrying costs

Assignment Help Operation Management
Reference no: EM131115685

A large law firm uses an average of 38 boxes of copier paper a day. The firm operates 261 days a year. Storage and handling costs for the paper are $32 a year per box, and it costs approximately $61 to order and receive a shipment of paper. a. What order size would minimize the sum of annual ordering and carrying costs? (Round your answer to the nearest whole number.) Order size boxes b. Compute the total annual cost using your order size from part a. (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) Total annual cost $ c. Except for rounding, are annual ordering and carrying costs always equal at the EOQ? Yes No d-1. The office manager is currently using an order size of 202 boxes. The partners of the firm expect the office to be managed "in a cost-efficient manner." compute total cost for this current order size. (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) TC = $

Reference no: EM131115685

Questions Cloud

Create process chart-flow chart to map the process : Create a process chart/flow chart to map the process of taking a license plate at Department of Motor Vehicle. Here are the process details: You enter the office and take a number, then walk 50 feet to the waiting area. During the wait, you count add..
What is the variable overhead rate variance for the month : A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. What is the variable overhead rate variance for the month
Financial statement impact of liability transactions : Recorded wage expense of $35,000. The cash paid was $25,000; the difference was due to various amounts withheld.
Men and women on cultural competency : An independent samples t test was conducted to determine whether differences exist between men and women on cultural competency scores.
Minimize the sum of annual ordering and carrying costs : A large law firm uses an average of 38 boxes of copier paper a day. The firm operates 261 days a year. Storage and handling costs for the paper are $32 a year per box, and it costs approximately $61 to order and receive a shipment of paper. What orde..
One-sample t-tests and confidence intervals : SPSS for Beginners 6a: One-sample t-tests and Confidence Intervals
How much would that affect the minimum total annual cost : A large bakery buys flour in 25-pound bags. The bakery uses an average of 4,500 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag. Determine the economic order qu..
What was your dividend yield and capital gains yield : Suppose you invested $98 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $0.47 today and then you sold it for $99. What was your dividend yield and capital gains yield on the investment?
Prepare the general journal entries to record the purchase : Prepare the general journal entries to record the purchase by A Ltd under AASB 3 Business Combinations and the payment to B Ltd. Narrations is not required.

Reviews

Write a Review

 

Operation Management Questions & Answers

  What are decision variables and two constrains

The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D). Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; What are decision variables. What is the objecti..

  What is the new system of government to be called

Do you agree or disagree with Dahl's interpretations of Madison's positions on each of these questions? Give a brief explanation of why or why not, and be sure to address each of the four questions that comprise this problem.

  Discuss the digital disruption

Discuss the digital disruption that is impacting the traditional print media of newspapers and magazines. What are some of the ways publishers can respond to these changes and attract and retain advertisers?

  Union shops are illegal under the taft-hartley act

The good cause exception to employment at will arises during the course of a worker’s employment based on the way the employer evaluates rewards and disciplines the employee. The Family and Medical Leave Act requires, that employees who are out of wo..

  Develop separate production plans for chase

The forecast for monthly demand is given below. On average there are 22 production days in a month. It takes one worker three days to complete one unit.

  Inventory management is critical to success in simulation

Inventory management is critical to success in the simulation. With respect to your team, discuss how you decide to balance the risk of stockouts against the costs of maintaining excess inventory.

  Agent expects both daytime and evening calls

A real estate agent is considering changing her cell phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.40 a minute for daytime calls and $.20 a minute for evening calls. Sup..

  Generate the range sensitivity analysis

Formulate a linear program to help minimize cost while satisfying demand. Solve the LP using Solver or LINDO and generate the range sensitivity analysis as part of the output.

  What extent did its success in leveraging relationships

In the beginning, fitness quest had alliances with trainers and its main competitors have alliances with major retailers. Thus, both companies on the basis of their alliances. Why do you think fitness quest won this competition? To what extent did it..

  Explain how you believe effective communications

Using your school, work, or volunteer experience, explain how you believe effective communications help an organization to achieve its goals and how you believe ineffective communications thwart achievement of its goals. Give examples from your exper..

  Statements with respect to the early practice of od

Which of the following statements with respect to the early practice of OD is correct?

  Discuss a mental model

Discuss a mental model that you have that needs to be changed. How does your model need to change and what are 3 things you can start doing to change it?

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