What is the total annual inventory cost of your policy

Assignment Help Operation Management
Reference no: EM13843062

Annual demand for an item is 40,000 units. The holding cost rate is 30% of the item cost. Ordering costs are $60/ order. Quantity discounts are available according to the schedule below:

Quantity          Price per Unit ($)

1-99                 90.00

100-299           85.00

300-399           80.00

400+                78.00

a. What is the optimal order quantity?

b. What is the total annual inventory cost of your policy?

c. Assume 52 five-day weeks per year. If the lead-time is 5 weeks, what should the reorder point be?

Reference no: EM13843062

Questions Cloud

Materials management and physical distribution : Distinguish between materials management and physical distribution. Discuss the postponement concept as it relates to the production and logistics interface. Discuss five activities that might be part of a company's logistics department.
Difference between a lean and an agile supply chain : Discuss the differences between a supply chain and supply chain management. What is the difference between a lean and an agile supply chain? Under what circumstances is each an appropriate supply chain approach to pursue? Do you agree or disagree tha..
Discuss which kinds of international strategies : When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discuss which kinds of international strategies are most appropriate for compani..
How does logistics contribute to time and place utility : How does logistics contribute to time and place utility? Explain the significance of the fact that the purpose of logistics is to meet customer requirements. Explain how big-box retailers are logistical trendsetters. What is the systems approach to p..
What is the total annual inventory cost of your policy : Annual demand for an item is 40,000 units. The holding cost rate is 30% of the item cost. Ordering costs are $60/ order. What is the optimal order quantity? What is the total annual inventory cost of your policy?
Product research-pricing research-promotion research : Discuss the four types of marketing research that a product company may use: product research, pricing research, promotion research and distribution research. Give examples of primary and secondary data.
Essay on a current social issue on the feminism of poverty : Write an essay on a current social issue on; the feminism of poverty. The first portion of the assignment mustaddress the magnitude of the issue with valid data and sources
Is cultural convergence occurring in the world : Is cultural convergence occurring in the world? In your view, do you think that the various cultures are coming closer together, or are they getting more different and prone to conflict?
Discuss the differences between primary and secondary data : Discuss the differences between primary and secondary data. And give real examples of how companies get and use the data.

Reviews

Write a Review

Operation Management Questions & Answers

  Describe interaction and outcomes of the meeting

Pretend to be an observer of a successful class meeting. Write down everything that took place. Include the grade level, the time, ground rules, the issues, student interaction and outcomes of the meeting.

  Elucidate how appropriate might a just in time inventory

Elucidate how appropriate might a just in time inventory system be for a product such as roller skates. Illustrate what opportunities are therefore Rollerblade managers to see themselves as selling services, instead of simply roller skates.

  What is the proabolity of being dealt 21

Using PHStat construct the probability distribution for the value of a 2 card hand dealt from a standard deck 0f 52 cards (all the face cards have a value of 10 and the ace a value of 11). What is the proabolity of being dealt 21?

  Create resource gantt chart

Create Responsibility Matrix and Create Resource Gantt Chart and Create Resources Loading Chart

  Identify the business rules associated

Identify the business rules associated with your selected business function / operation. Explain the manner in which such business rules would impact the design of a database.

  Perform a decision tree analysis-electric service

Mountain States Electric Service is an electrical utility company serving several states in the Rocky Mountain Region. It is considering replacing some of its equipment at a generating substation and is attempting to decide whether it should replace ..

  On which contract were the workers more productive

On which contract were the workers more productive? What is the percentage difference of productivity between the two contracts?

  Estimate the safety stock

Chicago's Hard Rock Hotel distributes a mean of 1000 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy.

  Implementing the new strategy within the business

Critically analyse the theory, concepts and models of operations and information management and demonstrate an understanding of the strategic importance of information management in global organisations.

  Three standard deviations above or below the centerline

Up to three standard deviations above or below the centerline is the amount of variation that statistical process control allows for

  What is a balanced scorecard graphic

What is a balanced scorecard graphic. Design a balance scorecard and give an explanation of how your scorecard "works" and why it would be of value to a manager.

  What is the total crash cost

If you have to crash the project to compete it in 37 weeks, what activitie swill you crash and in what order? What is the total crash cost?

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