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
Many firms try to market the same product as is in many different markets. The product is essentially the same, the only differences may be in packaging and messaging. What are

George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment optio

The purpose of operations management is to make the best use of productive resources. It entails the design and control of all the systems for the productive use of various raw mat

Personal Mini Warehouses is planning to expand its successful Nashua business into Lowell. In doing so, the company must determine how many storage rooms of each size to build. The

What happens to inventory as the number of kanban cards increases? Inventory decreases Inventory increases Inventory remains the same The number of kanban cards has no

Jack is a 2nd level manager at Johnson Controls. His department includes 2 supervisors, 5 night shift security guards, 5 technical workers, 10 janitorial staff, and 25 manufacturin

Question 1: Describe the main growth strategies that a firm can pursue and discuss conditions that favour each strategic option. Support your answer with suitable examples.

Simo Or Simultaneous Motion Charts  This chart (see figure), which employs the timescale of the multiple-activity chart, is used in conjunction with (or instead of) the two h

Boston Electric Generators has been getting many complaints from its major customer, House Station, about the quality of its shipments of home generators. Daniel shimshak , the pla

What are the arguments for and against social responsibility on the part of businesses? Research the topic and discuss. In addition, which set of arguments is more compelling?