What is the optimal order quantity

Assignment Help Operation Management
Reference no: EM13962025

Skinner’s Fish market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $5.70 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $2.40 per pound. Daily demand can be approximated by a normal distribution with a mean of 180 pounds and a standard deviation of 50 pounds. What is the optimal order quantity?

Reference no: EM13962025

Questions Cloud

Technological changes or other societal evolutions : Organizational Structure Use the ITT Tech Virtual Library to find one business magazine article about functional or hierarchical organizational structure and management modes and one article about matrix organizational structure and management modes...
Consider a periodic review system : Consider a periodic review system, where orders are placed every 12 days. The firm strives to provide a 97.5% cycle service level. Demand averages 300 units per day, and the standard deviation of demand per day is 64 units. Lead time is 18 days.
How many units of safety stock should be held : Consider a periodic review system, where orders are placed every 12 days. The firm strives to provide a 97.5% cycle service level. Demand averages 300 units per day, and the standard deviation of demand per day is 64 units. Lead time is 18 days. How ..
Consider continuous review inventory system : Consider a continuous review inventory system. Demand is normally distributed with an average of 44,000 per month and a monthly standard deviation of 1320 units. Lead time is two weeks (assume one month is four weeks). If the firm desires only an 81%..
What is the optimal order quantity : Skinner’s Fish market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $5.70 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $2.40 per pound. Daily demand can be approximat..
Annual demand for its boxes of chocolate heaven candies : Suzy’s Candy Distributors has an annual demand for its boxes of “Chocolate Heaven Candies” of 280,000 units, an ordering cost of $75 per order, and an annual holding cost percentage of 18%. The current purchase price for each box is $28, but the supp..
Supplies special makeup cases to a major circus : Sad Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 900 cases every two months. Sad clowns incurs setup costs of $500 every time it produces these cases, and its annual holding cost per case is $3. How many..
What is the total annual setup and holding cost : Sad Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 900 cases every two months. Sad clowns incurs setup costs of $500 every time it produces these cases, and its annual holding cost per case is $3. What is ..
ERP implementation support Web integration and SOA : Locate a company that you know or search the Internet or any other resources pertaining to any organization and find out the following: a What ERP or enterprise architecture do they have in their company b How has the architecture helped them in the ..

Reviews

Write a Review

 

Operation Management Questions & Answers

  Of the five management functions which do you expect will

of the five management functions which do you expect will experience the most dramatic changes in the next decade?

  What is better objective from finance-economic point of view

Very recently Volkswagen has been in the news because of their efforts to cheat on emissions. Discuss this with emphasis on their goal of being the no 1 auto manufacturer in the world. Is it advisable for a firm to be the number 1 in sales? What is a..

  Develop a chart to monitor the performance of a process

A manufacturer decides to develop a chart to monitor the performance of a process. 10 samples are taken with 5 units in each sample. Suppose the average of the 10 sample means is 55 and the average of the 10 sample ranges is 8.

  Apply that idea to leadership within an organization

Leo Durocher, baseball manager from 1939 to 1972, once said, "Nice guys finish last." Apply that idea to leadership within an organization

  Explain the process of financial planning used to estimate

Explain the process of financial planning used to estimate asset investment requirements for a corporation. Explain the concept of working capital management.

  Predicting monthly sale

For years The Glass Slipper restaurant has operated in a resort  community near a popular ski area of New Mexico. The restaurant  is busiest during the first 3 months of the year, when the  ski slopes are crowded and tourists flock to the area.

  Determine the three sigma control limits

Jim's Outfitters, Inc., makes custom fancy shirts for cowboys. The shirts could be flawed in various ways, including flaws in the weave or color of the fabric, loose buttons or decorations, wrong dimensions, and uneven stitches.

  Discuss also how organisations can be persuaded

Discuss also how organisations can be persuaded to adopt modern inventory control methodologies - Explain how such a basic mathematical model used in this question (the EOQ or Quantity Discount modes) can be altered to make it more realistic to inc..

  Identifying and analyzing your project risks

Remember, risk is an uncertain event or condition that can have a positive or negative impact on the project. This week, you will be identifying and analyzing your project risks and developing a risk management plan to monitor and track your proje..

  How do you approach the situation

In the middle of acquiring a new company overseas, the deal hits a roadblock and your negotiation team is sent in. Based on the eight negotiation steps, how do you approach the situation? The acquisitions team has indicated they stopped the proces..

  The financial performance of any business depends

The financial performance of any business depends on a number of factors. Other than the strategy in e-activity, explain in detail how two other factors specific to this MCDonald's might make

  Evaluating environmental and industry influences

Evaluating environmental and industry influences that create strategic opportunities or issues. Using theories and models of strategy to increase knowledge of an organization's strategic position and direction.

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