What is the optimal order quantity

Assignment Help Operation Management
Reference no: EM131278913

A gift shop sells Little Lentils-cuddly animal dolls stuffed with dried lentils-at a very steady pace of 10 per day, 310 days per year. The wholesale cost of the dolls is $5, and the gift shop uses an annual interest rate of 20 percent to compute holding costs.

a. If the shop wants to place an average of 20 replenishment orders per year, what order quantity should it use?

b. If the shop orders dolls in quantities of 100, what is the implied fixed order cost?

c. If the shop estimates the cost of placing a purchase order to be $10,

what is the optimal order quantity?

Reference no: EM131278913

Questions Cloud

What kind of contract has been used for given project : What kind of contract has been used for this project? Using the knowledge gained through "Procurement and Contracts Management Unit" explain in detail why was this contract unsuited for the project?
Helping employees change their health behavior : You have been invited by the Garber Corporation to interview for a newly created position in the company as a health education specialist. The position has been described as one that will focus on helping employees change their health behavior. which..
How feasible would strategy have been in machiavelli time : Discussion responses will be graded and must be carefully considered and well-crafted. Students will be evaluated on both the content of their responses and the grammar and mechanics of the postings.Students must employ correct English usage, prop..
What is the overall input offset voltage : The circuit of Fig. 14.32 is designed for an input offset voltage of 1 mV. If the width of the transistors in the input differential pair of the amplifier is doubled, what is the overall input offset voltage? (Neglect the input capacitance of the ..
What is the optimal order quantity : A gift shop sells Little Lentils-cuddly animal dolls stuffed with dried lentils-at a very steady pace of 10 per day, 310 days per year. The wholesale cost of the dolls is $5, and the gift shop uses an annual interest rate of 20 percent to compute hol..
Lot-sizing rules possess so-called wagner-whitin property : Which of the following lot-sizing rules possess the so-called Wagner-Whitin property?
Cheif learning officers self reflection : Write a essay -Cheif Learning Officer's Self reflection essay related to "Autopoesis"    relate ---> what do you learn from Autopoesis and How would apply autopoesis to Life and your work place life.
Pros and cons of each of the types of strategic alliances : Analyze the pros and cons of each of the types of strategic alliances (long-term contracts, networks, minority ownership, and joint ventures) as your means of managing the environment.
What temptations does he overcome in his journeying : Discuss Odysseus as an ideal of manly conduct and resourcefulness in ancient Greek society. Naturally you should concentrate on the The Odyssey, but the Iliad may also be relevant. What traits does Odysseus embody, and why there these especially v..

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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