What penalty is company incurring by its present order size

Assignment Help Operation Management
Reference no: EM132234323

A food processor uses approximately 27,000 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 7000 jars has been used. Monthly holding cost is 50 cents per jar, and reordering cost is $80 per order. The company operates an average of 20 days a month.

a- What penalty is the company incurring by its present order size?

b- The manager would prefer ordering 10 times each month but would have to justify any change in order size. One possibility is to simplify order processing to reduce the ordering cost. What ordering cost would enable the manager to justify ordering every other day (i.e., 10 times a month)?

Reference no: EM132234323

Labor act and the national labor relations act

The Railway Labor Act and the National Labor Relations Act govern most all aspects of air transport collective bargaining. Identify the differences between these two acts as t

Average time in queue and average time in system

What happens to the average time in queue (waiting in line) and average time in system (waiting in line or being processed) as we move from releasing production orders for lar

Linear programming with decision variables and constraints

Illustrate the linear programming model with its decision variables and its constraints. Use the computer solution generated by Excel (Solve) to see which team works with whic

Forming a cross-cultural project team

Which do you think is a more powerful determinant of human behavior cultural factors or individual differences? Describe how you might use the Big Five personality traits when

Schedule and cost performance index for the activity

If the earned value of a project activity is $5,500, actual cost is $12,000, and planned value is $9,600, what is the schedule and cost performance index for the activity?

What advantages and disadvantages of each type of structure

What are the principal differences between functional and divisional organizational structures? What are the advantages and disadvantages of each type of structure? When do

Analyze steps involved in crafting a wining business plan

Analyze the steps involved in crafting a wining business plan and make at least one recommendation for improving the process. Explain your rationale for making the recommend

Manage a hotel with one reception desk

You manage a hotel with one reception desk. On a typical day, you receive on average 8 customers per hour. It takes on average 6 minutes to check-in the customer. For the sa

Reviews

Write a Review

 
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