Firm save annually in ordering-carrying costs by using EOQ

Assignment Help Operation Management

Reference no: EM13899221

A produce distributor uses 710 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month.

How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM13899221

Questions Cloud

Justify capacity expansion using economies of scale : Why is it dangerous to justify capacity expansion using economies of scale?

What they mean by the term market fundamentalism : How the underlying problem is one of the "tragedy of the commons"-see the yellow highlighted sections of the article of this name, that we discussed in class, on Blackboard and what they mean by the term "market fundamentalism"

Different reports on the life of jesus : Christians put a lot of emphasis on the life of Jesus, which is reported through four different sacred writings, the gospels of the New Testament. Why do you think the tradition has four different reports on the life of Jesus?

About the theory of constraints : What is the maximum output this assembly process could produce in 8 hours? If the capacity of Process 1 is increased to 91 units/hour, how many units can be assembled in 8 hours?

Firm save annually in ordering-carrying costs by using EOQ : A produce distributor uses 710 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once..

Apply operations management techniques to increase profits : Brandon's computer shop has hired a consultant to help apply operations management techniques to increase profits. Currently the shop sells most of its computers to a high-end customized online retailer and sales are steady at 250 per mth. what is th..

Significance of the genealogy of jesus : 1. Describe the significance of the genealogy of Jesus as recorded in Matthew's Gospel. 2. What does Jesus teach about in His Olivet Discourse and what does He state concerning His return in His Second Advent? (Matthew 24-25)

Statements regarding capacity : Which of the following statements regarding capacity is NOT true?

User Account

All Pages