Find the optimal order quantity for item type

Assignment Help Business Management
Reference no: EM132098439

The procurement department of Llenroc Electronics purchases the component types from a particular supplier. The fixed cost of placing an order for any of three types of components is $100. The inventory holding cost factor, I, is .20. Other relevant data are presented in the following table.

ITEM

1

2

3

ANNUAL DEMAND RATE

10,000

30,000

20,000

UNIT COST

350

125

210

Space Reqm't (ft^2/unit)

10

15

12

The CFO has placed a $75,000 limit on the average value of inventory carried in stock. Furthermore, there is a limit on the amount of space available to store inventory of 10,000 ft2.

Find the optimal order quantity for each item type so as minimize the total average annual fixed ordering and holding costs subject to the constraints.

Reference no: EM132098439

Questions Cloud

Explain how publish then filter works : MGT 245 Technological Entrepreneurship and Innovation - University of Management and Technology - Explain how publish then filter works. Give one example
What biological characteristics have contributed to success : The insects have shown to be a particularly successful class within the phylum. What biological characteristics have contributed to the success of insects?
Used for developing and sustaining is security culture : How can lessons from these implementations be used for developing and sustaining IS security culture?
Develop a comprehensive strategy for training new employees : Develop a comprehensive strategy for training new employees. Focusing on the role of the new employees within the organization.
Find the optimal order quantity for item type : Find the optimal order quantity for each item type so as minimize the total average annual fixed ordering and holding costs subject to the constraints.
What is honey bee democracy : MGT236 Decision Making - University of Management and Technology - What is honey bee democracy - How do essentially brainless bees make collective decisions
Derive an expression for the minimum allowable distance : Derive an expression for the minimum allowable distance between east-west rowsof solar collectors that will assure no shading of one row by the row immediately.
Prepare an audit report on Wesfarmers Ltd : HI6026 - Audit, Assurance and Compliance Assignment - Prepare an audit report on Wesfarmers Ltd. Computation of income statement and balance sheet ratio
What are the direction of the displacement : A golfer takes three putts to get the ball into the hole. The first put displaces the ball 3.66m north, the second 1.83m southeast, and the third 0.99m.

Reviews

Write a Review

Business Management Questions & Answers

  Role of leader in employee driven organizations

How does Locus of control impact a person's role in an organization, also explain the Role of Leader in employee driven organizations.

  Suzanne''s endorsement and cashes the check at community bank

Guy issues a check drawn on his account at First State Bank for $100 to the order of Suzanne Rice, however the check is stolen by Harvey before Guy gives it to Suzanne

  What is the hazard communication standard

What is the hazard communication standard? Explain how this standard applies to the workplace. What should employers do in order to be compliant with this standard? What are the possible implications to an employer for failure to adhere to this st..

  Undertaking some limited local customization

Describe what this limited local customization looks like for an actual company of your choosing.

  Performance in order to effectively face the completion

Can you Identify ways a company can improve its performance in order to effectively face the completion?

  Application of health care quality concepts

In order to apply health care quality concepts to a health care issue or a facility using the measurement-related concept of structure

  Profit-maximizing firm operates at a point

Suppose a competitive, profit-maximizing firm operates at a point where its short-run average cost curve is upward sloping.

  Strategic level of operations

Identify a specific problem, generate and evaluate solutions and devise an implementation plan - address this problem in a new way by application of tools

  As a career development tool mentoring has been related

As a career development tool mentoring has been related to both potential benefits and problems, define how you feel about the prospect of becoming involved in a mentoring relationship as part of your own career development.

  Encourage supervisors to be effective coaches

1. Supervisors often resist taking on the role of coach. What can organizations do to encourage supervisors to be effective coaches?

  Example of an impulsive decision

1. How do you make decisions? Do you use the same process every time, or does it change? Have you ever made an impulsive decision? Give an example of an impulsive decision you have made. If you had had more time to make the decision, would you hav..

  Organizations such as events like graduations

The company will compete other businesses in the industry and will have the competitive advantage because where are going to extend the market to smaller organizations such as events like graduations.

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