Annual stocking cost at the current order quantity

Assignment Help Operation Management

Reference no: EM132262749

Presently they order 250 at a time and they were wondering if ordering more or less might be more economical. They have been experiencing some problems with being out of stock. The demand for their note pads is 100,000 per year. It costs them 25% of the acquisition cost to keep one note pad in inventory for a year. The order cost is $2.00 and the acquisition cost is $1.00.

a) What is the total annual stocking cost at the current order quantity?

b) What is the economic order quantity (EOQ)?

c) What is the total annual stocking cost at the EOQ?

Reference no: EM132262749

Questions Cloud

Regarding communication in the workplace : Regarding communication in the workplace. In about three paragraphs, list three tools that you as a manager would use and how you would use

Which of the five conflict styles : Which of the five conflict styles is most difficult for you to implement? Why? As a leader, when is it appropriate for you to engage in conflict?

Discuss why hmos were formed : What were some of the forces that they were established, in response to? How might current and future forces lead to further changes?

Pressure that the corporate stockholders : Putting in consideration the pressure that the corporate stockholders faces from investors, shareholders

Annual stocking cost at the current order quantity : What is the total annual stocking cost at the current order quantity? What is the economic order quantity (EOQ)?

How do you see HRIS programs assist HRM departments : There are many different HR functions: training, staffing, benefits, performance management, and so on. What triggers a process change as it relates to those.

Marketing management is largely artistic exercise : Marketing management is largely an artistic exercise and therefore highly subjective versus marketing management is largely a scientific exercise

Explain what led to the eventual resolution : Read the case study "Collaboration amid Crisis: The Department of Defense during Hurricane Katrina." Explain what led to the eventual resolution.

Organizational mandates and mission : Why is it important to clarify organizational mandates and mission?

User Account

All Pages