What are the ordering and holding costs

Assignment Help Operation Management
Reference no: EM132200079

A hotel purchases 8,000 gallons of a cleaning product. Each gallon costs $10 and the cost of holding one gallon for a year is estimated to be $3. Ordering cost amounts to $30 per order.

If the hotel orders in lots of 500 gallons, how many orders does it place each year?

What are the ordering and holding costs, and total annual cost?

If the economic ordering quantity is used, how much improvement in cost will result?

Reference no: EM132200079

Questions Cloud

Some aspect of health information technology : Research two organization via the Internet that deals with some aspect of Health Information Technology (HIT), and download whatever you find helpful-accessible
Level of net investment : If the company expects to generate after-tax operating cash flows of 2,000,000 per year and its WACC is 10%, what level of net investment can they expend
Identify organization that uses cooperative strategy : Identify an organization that uses a cooperative strategy. Describe what you suggest the organization should use to manage this cooperative strategy.
Capital budgeting process : What are the attributes of the cash flows that are used in the capital budgeting process and why are they important to the analysis?
What are the ordering and holding costs : What are the ordering and holding costs, and total annual cost?
Obstacles to obtaining an education in developing countries : Outline the most significant obstacles to obtaining an education in developing countries.
Information needs of health care facilities and profession : Discuss how accreditation, facility licensure, and certification influence the information needs of health care facilities and your profession.
Market about the risk appetite of investors : What information does this provide to the market about the risk appetite of investors?
How can consumers protect themselves from this crime : What is identity theft? How can consumers protect themselves from this crime?

Reviews

Write a Review

 

Operation Management Questions & Answers

  Segmented the market too much and confused customers

Do you think hotel companies have segmented the market too much and confused customers?

  Describe the issue of offer and acceptance

Describe the issue of “offer and acceptance “as it relates to purchase orders.

  Compute the corresponding pessimistic and optimistic cpis

Compute the corresponding pessimistic, most likely, and optimistic CPIs, SPIs, EACs, and forecast the corresponding completion dates for the project.

  Competitor good-service as means of engaging in competition

Is there anything unethical about a company imitating a competitor's good/service as a means of engaging in competition?

  The demand requirements at minimum cost

During the next three months, General Cars must meet (on time) the following demand for trucks and cars: month 1 – 400 trucks, 800 cars; month 2 – 300 trucks, 300 cars; month 3 – 500 trucks, 500 cars. During each month, at most 1,200 vehicles can be ..

  Determine key operating characteristics of the system

Students will analyze a waiting line system and determine key operating characteristics of the system. What is the mean (average) time in hours that a customer spends in the system (waiting on hold, then having their question answered)? What is the m..

  Evaluate the effectiveness of safety training program

How would you evaluate the effectiveness of a safety training program in a manufacturing company? What are three tools (methods) you would use in the selection process of a software sales person and why would you choose those? Mass marketing is dead ..

  Build to have a targeted therapeutics strategy

What capabilities does Lilly have now and what capabilities must it build to have a targeted therapeutics strategy?

  Differentiated and concentrated targeting strategies

Compare and contrast undifferentiated, differentiated and concentrated targeting strategies. Which strategy do you think is the best?

  What are your personal hot buttons

What are your personal hot buttons? How do you feel when someone triggers one of your hot buttons? Why?

  Silicon valley-based tech venture capital firm

Silicon Valley-based tech venture capital firm Kleiner Perkins Caufield & Byers (Kleiner Perkins), on grounds of gender discrimination.

  The differences between leadership and management

Identify and read the recommended preparation materials of interest found in the Library Knowledge Base and in the Policy and Strategy Knowledge Base.

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