Compute total cost of ordering-carrying semiprecious stones

Assignment Help Operation Management

Reference no: EM131118356

A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier charges $20 per stone, annual carrying costs are 30%, and the cost of processing orders is $90. The jewelry firm operates 250 days per year and their usage rate is 86 stones per day.

a. Determine the economic order quantity.

b. Compute the total cost of ordering and carrying semiprecious stones.

Reference no: EM131118356

Questions Cloud

Conflict management are competitive-accommodative : The five major styles of conflict management are competitive, accommodative, sharing, collaborative, and avoidant. Use this information and/or develop a workplace example to illustrate the particular style in action by Steve Jobs.

Statements about structured groups : Which of the following statements about structured groups is NOT true? a. Structured groups m·e sometimes referred to as psychoeducational groups. b. Structured groups are designed to deal with an information deficit in a certain area.

Detail the three types of intellectual property rights : Please define, explain, compare, and contrast in detail the three types of intellectual property rights. Be sure to use specific examples of the types of intellectual property SAG will need to protect when explaining your answers.

What is the average number of bags on hand : A large bakery buys flour in 40-pound bags. The bakery uses an average of 8,960 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $20 per order. Annual carrying costs are $85 per bag. What is the average number of b..

Compute total cost of ordering-carrying semiprecious stones : A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier charges $20 per stone, annual carrying costs are 30%, and the cost of processing orders is $90. The jewelry firm operates 250 days per year and their usage rate is 86 s..

What was the store inventory turnover rate : Payless Boots Company maintains average inventory of $100,000 (at cost). Last year, the store’s cost of good’ sale was $750,000. Payless Boots estimated that its inventory carrying cost is 25% annually. What was the store’s inventory turnover rate?

Decreasing the safety stock will result in : Decreasing the safety stock will result in

Driving sustainable innovation by embracing tension : Explain and illustrate Patagonia’s corporate challenges and tensions within its mission of performance, durability, profitability, and sustainability. Outline the DWR challenge in the outdoor apparel industry. Explain Patagonia’s efforts to solve the..

Determine the chip thickness and metal removal rate : In a surface grinding operation the wheel diameter = 150 mm and the depth = 0.07 mm. The wheel speed = 1450 m/min, work speed = 0.25 m/s, and grinding width = 5 mm. The number of active grits per area of wheel surface = 0.75 grits/mm2. If the grain a..

User Account

All Pages