Economic order quantity for ben to order

Assignment Help Business Management
Reference no: EM131383335

Gentle Ben's bar and restaurant uses 5000 quart bottles of an imported win each year. The effervescent wine cost$3 per bottle and is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order is placed and holding costs are 20 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is  100 bottles (closed two weeks per year) with the standard deviation of 30 bottles.

Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability.

a. What is the economic order quantity for Ben to order?

b. At what inventory level should he place an order?

Reference no: EM131383335

Questions Cloud

Find the velocity of the free end : Deduce a similar formula for the acceleration of the free end and show that it always exceeds g. Find how far the free end has fallen when its acceleration has risen to 5g.
Capabilities for individuals to communicate : The information age in which we live brings with it enhanced capabilities for individuals to communicate securely without expending great amounts of money, using fairly sophisticated and easily accessible technologies. Describe these capabilities,..
Strategies that will help your company reduce turnover : Write a two (2) page memo in which you: Develop two (2) strategies that will help your company reduce expatriate turnover. Summarize both ideas in memo format to present to your boss
Show free end of the rope executes simple harmonic motion : The system is released from rest in this position. Show that the free end of the rope executes simple harmonic motion, and find its period and amplitude.
Economic order quantity for ben to order : Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. a. What is the economic order quantity for Ben to order? b. At what inventory level should he place an order?
Describe your experiences related to your setup of mysql : Describe your experiences related to your setup of MySQL. Include any difficulties or issues that you had encountered during the installation.
Find the normal reactions of the cylinder : Find the normal reactions of the cylinder on each of the particles. Show that P is first to leave the cylinder and that this happens when θ = 70° approximately.
Newfound interest in efficiency : George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization.
Find the acceleration of the block of mass m up the plane : The blocks are connected by a light inextensible string that passes over a light frictionless pulley. Find the acceleration of the block of mass m up the plane, and deduce the tension in the string.

Reviews

Write a Review

Business Management Questions & Answers

  Participate in a guidance session role-play

Professional conduct that promotes trust with internal and external contacts - adjusting own interpersonal communication style to meet the organisation's cultural diversity and ethical environment

  What is sustainable development

Please help me with second essay question: What is sustainable development? Why is sustainability a dilemma for MNCs? Provide a "real world" example w/rationale and direct connection to course concepts and terms.

  When looking at risks in the project environment

a) When looking at risks in the project environment, why are we concerned with the impact and probability of a potential risk event? b) How could you sort through a long list of risks in a project so that focus is placed on the most important o..

  Development of research studies

Peer-reviewed article that discusses research in an organization. Topic ideas include the role of research, development of research studies, integration of different types of methods, or the communication of research results within an organization..

  Review aspects of change activities and actions

Select a Diagnostic Model that you utilize to review aspects of change activities and actions that have been taken by the companies chosen. Here we are looking at the "parts" of the companies as well as their strategies, as surmised by your resear..

  How you plan to use it in managing your project

The initial post will contain your project planning tool and a discussion on how you plan to use it in managing your project. Please describe and explain how the tool can be used.

  Determining sales tax and revenue

You are the owner of Cache; a chain of women's clothing boutiques. Your state has a sales tax of 6% and additional city tax of 1.5%. Each quarter you are responsible of making these tax deposits to the city and state.

  Select an area of growth within e-commerce or e-marketing

Research Paper: Strategic Directions of E-Commerce and Future Development Select an area of growth within e-commerce or e-marketing. This can be an area of technology, technology implementation, business structure, or anything else related to ecomme..

  Condition and potential complications

Ralph had polio as a boy and was partially paralyzed in one lower limb for over a year. Although no longer paralyzed, he now has a severe lateral curvature of the lumbar spine. Explain what has happened and identify his condition and potential com..

  Current trends in patient data capture

Analyze the current trends in patient data capture and information sharing among health care providers, assessing their impact on your organization's operations.

  Education and training of the healthcare professional

Identify the education and training of the healthcare professional such as a Pediatrician What is the interface between this profession and other healthcare providers? Who might their superior be in the healthcare network?

  How companies can change your job

Can your company legally change your job responsibilities, reduce your salary, and/or assign you to a different department? How would a union situation address this issue?

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