Calculate the optimum order quantity, Operation Management

1. The annual demand for a product is 8,000 units. The order cost is $30 for a single order. The cost of the item is $10 and the holding cost has been calculated at $3 to carry one item in stock for one year. 

Calculate: 

(a) The optimum order quantity 

(b) The number of orders to be placed annually and 

(c) The overall costs.

Posted Date: 3/19/2013 2:09:26 AM | Location : United States







Related Discussions:- Calculate the optimum order quantity, Assignment Help, Ask Question on Calculate the optimum order quantity, Get Answer, Expert's Help, Calculate the optimum order quantity Discussions

Write discussion on Calculate the optimum order quantity
Your posts are moderated
Related Questions
Task 1 Read: Chapter 7 of the core learning material and supporting text chapters on Performance Measurement. Task 2 Investigate: Either investigate the performance measurement


Describe the common grounds for discharge and the procedural requirements that are outlined in many collective bargaining agreements. State why the following are important when the

In what ways can tale presence help increase a company's efficiency and effectiveness-for example, efficiency or customer responsiveness? 2. What are the possible drawbacks or dang

Stan's company is considering producing a gear assembly that it now purchases from Sal Company. Salt company charges 4 per unit with a minimum order of 3000 units. Stan estimates t

Answer the following questions (use MS Project help if necessary)- Define effort-driven? Under what circumstances would you turn off effort driven scheduling? Use a real-w

What capacity problems are encountered when a new drug is introduced to the market?

You are to simulate arrivals and departures from a fictional airport with a single runway which has a capacity of handling a total 6 aircraft at once (any mix of take-offs and land

Discuss the rival principles of distribution. Why is it necessary to have different views?

Cunningham Performance Auto, Inc., modifies 375 autos per year. The manager, Peter Cunningham, is interested in obtaining a measure of overall performance. He has asked you to prov