Changes in parameter values

Assignment Help Business Economics
Reference no: EM137655

Q. The metropolitan book company assumed with certain that the ordering cost is $1200 per order as well as the inventory carrying cost is $0.08 per unit per year. However, the inventory model parameters are frequently only estimates that are subject to some degree of uncertainty. Calculate the optimal order quantity if
both ordering costs as well as carrying cost are 10% lower than originally estimated. (b) both ordering cost as well as carrying cost are 10% higher than originally estimated, (c) ordering cost is 10% higher as well as carrying cost is 10% lower than originally estimated, (d) ordering cost is 10% lower as well as carrying cost is 10% higher than originally estimated. Determine the optimal order quantity as well as total inventory cost for each of the four cases. Prepare a table with values from all four cases as well as compare the sensitivity of the model solution to changes in parameter values.

Using Excel, Determine the following:
Hayes Electronics assumes with certainty that the ordering cost is $450 per order as well as the inventory carrying cost is $170 per unit per year. However, the inventory model parameters are frequently only estimates that are subject to some degree of uncertainty. Consider four cases of variation in the model parameters as follows:

(a) both ordering cost as well as carrying cost is 10% lower than originally estimated.

(b) both ordering cost as well as carrying cost are 10% higher than originally estimated,

(c) ordering cost is 10% higher as well as carrying cost is 10% lower than originally estimated, (d) ordering cost is 10% lower as well as carrying cost is 10% higher than originally estimated. Determine the optimal order quantity as well as total inventory cost for each of the four cases. Prepare a table with values from all four cases as well as compare the sensitivity of the model solution to changes in parameter values.

 

Reference no: EM137655

Reviews

Write a Review

 

Business Economics Questions & Answers

  Advantage of economies of scale

Think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs.

  Discuss the importance of a well-developed compensation plan

Discuss the importance of a well-developed compensation plan in attracting as well as retaining good employees as well as how to keep those plans from "working too well."

  Mining is proposed for a wilderness area

Mining is proposed for a wilderness area that provides two benefits: recreation due to backpacking opportunities and biodiversity there are endangered wildlife and plants.

  Firm pollutes a stream

Suppose a firm pollutes a stream that has a recreational value only when pollution is below a certain level. If transaction costs are low.

  Un millennium development goals

Can the researcher say with a 0.05 level of significance that the proportion of children not completing primary school is more than 1%.

  Economic analysis section of a business proposal

Their banks are holding back credit so it is harder for businesses to invest and for consumers to spend

  Various combinations of scores

Budget line showing the various combinations of scores on the two exams that she can achieve with a total of 400 minutes of studying.

  Clarifying resource demand

Clarifying resource demand as well as differs from those determinant product demand.

  Free x box offer influence a consumers mental

Visualize you are a manager for good or service used. From results of the deterioration equation, recommend strategies to either preserve demand if an increase over 3 periods occurs or improve demand

  Social security system

Discuss the Social Security System, current status and future outlook. Be thorough and focus on the economic considerations. Cite at least 6 sources.

  Chain-weighting method

Calculate real GDP in each year, and the percentage increase in real GDP from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.

  Law of demand

Do these public goods conform to the law of demand. For which public supplies is demand price elastic.

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