For what value of ordering would its action be optional

Assignment Help Operation Management

Reference no: EM132113874

Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 35% of the $9 unit cost and that annual demand is about 235 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optional?

a) For what value of ordering would its action be optional?

Its action would be optimal given an ordering cost of $---- per order (round your response to two decimal)

b) If the true ordering cost turns out to be much greater than your answer to part (a) what is the impact on the firm's ordering policy?

Reference no: EM132113874

Questions Cloud

Case study discuss the porter generic strategies : According to case study discuss the porter’s generic strategies which strategies are better for this company?

What is reorder point when this demand uncertainty exists : Calculate the reorder point, using Equation 20.3. What is the reorder point when this demand uncertainty exists?

One of the four basic categories of ethics : Which of the following is one of the four basic categories of ethics?

Statements describe the terms morals and values : Which of the following statements describe the terms "morals" and "values"?

For what value of ordering would its action be optional : Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. For what value of ordering would its action be optional?

In litigation the parties must be represented by attorneys : In litigation the parties must be represented by attorneys. Litigation is classified as.

Difference is difference between wbs and pbs : What is wbs and pbs? Difference is difference between wbs and pbs? What is project objective?

Describe the quality standards : Describe the quality standards that must be included or referenced in the quality plan. As a manager how do you classify the project ?

Litigation is initiated when one party petitions : In litigation the parties. Litigation is initiated when one party petitions the court to hear and decide the dispute.

User Account

All Pages