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Inventory Management:
One of the products stocked by Joe's Club is Joe's Cola, which is sold in cases. The demand level for Joe's Cola is highly seasonal.
(a) According to the EOQ formula, how many cases of Joe's Cola should be ordered at a time during the slow season? How many cases of Joe's Cola should be ordered during the busy season?
(b) Suppose Joe's Club decides to use the same order quantity throughout the year, resulting in an order quantity of 150 units. Calculate total holding and ordering costs for the year. Do not consider safety stock in your calculations. To do the calculations, annual demand can be calculated as an average of the slow and busy rates given above.
Construct an object model for a library. The library has an aggregation relationship with book and with patron. That is, the library is really made up of books and patrons.
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1. Draw the equivalent cash flow diagram and find the present value for the following cases:
1. Using the fixed expenses and projected sales from the example, what would the break-even price be if unit cost is $35?
Hull Baking Company uses 250,000 lb of sugar annually in its cakes and pastries. The company can order the sugar in 100 lb bags, at the cost of $19.50 per bag, delivered. The cost of preparing and sending an order is $50. The storage and handling ..
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