Computing the optimal order quantity

Assignment Help Operation Management
Reference no: EM131902045

Question: During this year, "El Choliseo" will house several music performances. Arena vending annually sells large quantities of soft drinks and beer in plastic cups. The local container cup manufacturer that supplies the cups in boxes of 100 has offered arena management the following discount price schedule for cups:

Order Quantity (boxes)

Price per Box ($)

2000-6999

47

7000-11,999

43

12,000-19,999

41

20,000+

38

The annual demand for cups is 2.3 million, the annual carrying cost per box of cups is $1.90, and ordering cost is $320. Determine the optimal order quantity and total annual inventory cost.

Reference no: EM131902045

Questions Cloud

Calculate the loan amount and the outstanding loan balance : The first payment is $60 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 1% larger than the prior payment.
Compute saving at each level of disposable income : The following table is a consumption schedule. Assume that taxes and transfer payments are zero and that all saving is personal saving.
Determine the ending inventory cost as of march : Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period. Determine the ending inventory cost as of March.
What are public goods and characteristics : What are public goods and their characteristics? What policy tools might be needed in the case of public goods?
Computing the optimal order quantity : During this year, "El Choliseo" will house several music performances. Arena vending annually sells large quantities of soft drinks and beer in plastic cups.
What do investments banks sell high globally : Describe how investment bank services differ from commercial bank services. Why do investment banks sometimes form international syndicates?
What are two approaches to measuring gdp : What is GDP? What are two approaches to measuring GDP? What is inflation? Why is GDP and why is inflation hard to measure?
Identifying the causes of unemployment : What is the explanation of this inconsistency? Discuss, identifying the causes of unemployment.
What are substitutes and complements : What are substitutes and complements? How is the effect of a price change related to each type of good? In pricing what does a surplus (shortage) mean?

Reviews

Write a Review

Operation Management Questions & Answers

  Media environment affects consumer interactions with brands

Describe how the new communications media environment affects consumer interactions with brands.

  Free of typographical errors

Henri has complained my review of his work is unfairly negative, A review of a book of poetry merely indicates that it is "free of typographical errors."

  Compensate performance based on teamwork

Josh Martin is writing a business plan for starting a new restaurant. His concept is to create a restaurant that will serve Spanish cuisine such as paella, steak, and other traditional dishes in a family atmosphere in a resort community along the Nor..

  Analyzes and evaluates scholarly work-scientific method

Write a critique of 1,000–1,250 words that analyzes and evaluates a scholarly work, focusing on the scientific method. The critique should: 1. Select a research study (complete with Method, Results, and Discussion sections).

  Cracteristics of services is the reason for eat

The number of customers who dine at Eat and Den, a restaurant, varies during weekdays and weekends. On days when customer traffic is less, Eat and Den incurs losses because the food prepared on one day will not be fresh the next day. In this scenario..

  Evelopment firm sues the engineer and architecture firm

Assume a land development company hired an engineer and architecture firm to conduct a feasibility study on a potential land purchase. The report indicated that the land was suitable for development. Later, zoning requests are denied and the land dev..

  What are the agencys primary areas of focus

What is your understanding of the role of the U.S. Public Health System? What are the agency's primary areas of focus? Do you think the agency's initiatives are making a difference?

  How can an understanding of organizational behavior

How can an understanding of organizational behavior help a manager improve employee job satisfaction and decrease turnover?

  Predicting monthly sale

For years The Glass Slipper restaurant has operated in a resort  community near a popular ski area of New Mexico. The restaurant  is busiest during the first 3 months of the year, when the  ski slopes are crowded and tourists flock to the area.

  Outsourcing and shifting production jobs

Outsourcing and shifting production jobs or work assignments to another company to cut costs is a controversial topic. When those jobs are moved to another county it is can be called global outsourcing or offshoring. Are you an advocate for outsourci..

  Psychological contract between employers and employees

This forum is focused on the issue of the informal contract that exists between employers and employees. Several decades ago, it was not uncommon for thereto be a large degree of loyalty between employers and employees. I am interested in your though..

  Make their research more efficient and lower costs

What techniques or software might they use to make their research more efficient and lower costs?

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