User Account

All Pages

Discuss the nature of the costs that affect inventory size

Assignment Help Operation Management
Reference no: EM131771220

Assignment

TEXT BOOK:  LOOSE LEAF OPERTIONS AND SUPPLY CHAIN MANAGEMENT THE CORE 3RD. EDITION (IT MUST BE THIS EDITION)

F. Robert Jacobs, INDIANA UNIV BLOOMINGTON

Richard B Chase, UNIV OF SOUTHERN CALIFORNIA

CHAPTER 10 -

PART 1

This activity has the purpose of helping studentssummarize fixed-order quantity and fixed-time period models, including ways to determine safety stock when there is variability in demand.Work the following situation (it will require your study of the textbook and some internet researching.)

"José runs a mail-order business for gym equipment from his house in Dorado. Annual demand for the PuertoFlexers (the best seller) is 25,000 in the US.

Assume that the year has 360 days. He sells each product for $350, earning a markup of 20%, including shipping and handling to the US. The annual holding cost per unit is $5.50 and the cost to process an order is $25. It takes ten days to completely process an order. (Write down any assumption that you have to make.)

a. What are the EOQ and Total Cost of this situation?

b. How long does a cycle time last?

c. If José has space for 565 products, can all be stored in his facilities?

d. If José expect demand to rise by 15% next year, does he has to make any arrangements?

Part 2 -

This activity has the purpose of helping students describe what the economic order quantity is and how to calculate it.

1. Discuss the nature of the costs that affect inventory size.

Reference no: EM131771220

Questions Cloud

Discuss bushel at the time the crop is ready for harvest : Corporation's best guess is that grain prices will be around $2.00 per bushel at the time the crop is ready for harvest. What should the company do
Context of motivation perspectives : Describe creative behavior in the context of motivation perspectives.
How effectively change negative attitudes in your department : Explain each of the seven steps, including sub steps, with detailed, specific examples on how you will effectively change negative attitudes in your department.
Compute the mass diffusion rate : The mass diffusion rate drn/dt across a boundary be-tween two different metals is a function of which of the following variables (four best answers).
Discuss the nature of the costs that affect inventory size : What are the EOQ and Total Cost of this situation?If José expect demand to rise by 15% next year, does he has to make any arrangements?
Review of the performance analysis of stevens district : Review of the performance analysis of Stevens District Hospital, consider what you perceive to be the strengths, weaknesses, opportunities and threats
Attractiveness relative to reputation and brand recognition : In regard to recruiting, discuss organizational attractiveness relative to reputation and brand recognition.
Develop a new critical path : Advise a new path based on these obstacles and how to make a chart in MS Project and import it to MS Word. It needs to be incorporated into the document.
Identify key interventions in your practice : Identify key interventions in your practice. What evidence supports the use of the intervention? What patient safety measures are considered?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd