Firm save annually in ordering-carrying costs by using EOQ

Assignment Help Operation Management
Reference no: EM132117986

A produce distributor uses 783 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an annual carrying cost of 32 percent of the purchase price per crate. Ordering costs are $31. Currently the manager orders once a month.

How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM132117986

Questions Cloud

Incurred by restaurant that serves food that is eaten raw : What are the costs of quality that are incurred by a restaurant that serves food that is eaten raw: salads (for example)?
Do you belong to an online community : Do you belong to an online community? If so, describe the benefits you derive from this group and how it affects your consumption.
Future thinking of emerging markets : Name 2-3 aspects that may impact your future thinking of emerging markets and/or the global economy :
Major strengths and flaws in the feedback control system : What do you see as the major strengths and flaws in the feedback control system used in the schools in this scenario?
Firm save annually in ordering-carrying costs by using EOQ : How much could the firm save annually in ordering and carrying costs by using the EOQ?
Time off at superior software services : Do you think changing Superior's time off policies will decrease unscheduled time off?
Employee pay and benefits are designed and administered : Product market forces and the effect of regulation on the ways in which employee pay and benefits are designed and administered.
Global mid-size unionized manufacturing firm : Five years ago you joined a global mid-size unionized manufacturing firm as an HR manager.
Setting up information desk manned by one employee : A new shopping mall is considering setting up an information desk manned by one employee.

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!

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