How many orders will be placed every year

Assignment Help Operation Management
Reference no: EM1385040

Magnetron, Inc. manufactures microwave ovens for the commercial market. Currently, Magnetron is producing part 2104. Next year's requirement for part 2104 is estimated at 20,000 units. Part 2104 is valued at $50 per unit, and the combined storage and handling cost is $8 per unit per year. The cost of preparing the order and making the production setup is $200.
a. Compute the economic order quantity
b. How many orders will be placed every year?
c. What is the expected annual holding cost?
d. What is the expected annual order cost?
Image text transcribed for accessibility: Magnetron, Inc. manufactures microwave ovens for the commercial market. Currently, Magnetron is producing part 2104. Next year's requirement for part 2104 is estimated at 20,000 units. Part 2104 is valued at $50 per unit, and the combined storage and handling cost is $8 per unit per year. The cost of preparing the order and making the production setup is $200. Compute the economic order quantity How many orders will be placed every year? What is the expected annual holding cost? What is the expected annual order cost?

Reference no: EM1385040

Questions Cloud

Calculate the probability which howard will have to pay : Howard is in the 33% tax bracket, he will then have to pay the Internal Revenue Service 33% of his profit. Calculate the probability which Howard will have to pay the IRS at least $400.
How many rebounds will the ball make : The emissivity of her skin is 0.750 and its surface area is 1.30 m2. How much time would it take for her to emit a net radiant energy from her body that is equal to energy contained in this dessert.
What is re-order point : Image text transcribed for accessibility: The injection molding department of a company uses an average of 30 gallons of special lubricant a day.
Compute pressure if temperature and number of moles produces : A container with the ideal gas, temperature, and number of moles produces what pressure? What occurs if source voltage is restored to 12 V, but resistors change?
How many orders will be placed every year : Magnetron, Inc. manufactures microwave ovens for the commercial market. Currently, Magnetron is producing part 2104. Next year's requirement for part 2104 is estimated at 20,000 units
Dna testing based on valid scientific theory : Suppose if we had a population of 1000 individuals, how many would be feebleminded? How many would be carriers for feeblemindedness? Is mitochondrial DNA testing based on valid scientific theory?
What is the amplitude of sound-wave pressure variation : At full power, how long would it take for car to accelerate from 0 to 56 mph? Neglect friction and air resistance.
Where will the end of the spring line up with the ruler mark : Consider the system with m1 = 24kg, m2 = 14.60kg, R = 0.1400m, and the mass of the pulley M = 5.0kg. Object m2 is resting on the floor, and object m1 is 4.600m above the floor when it is released from rest. The pulley axis is frictionless. The cor..
What three questions would you ask a prospective employer : What three questions would you ask a prospective employer before you would consider accepting a job offer? Further, if you did take the job,

Reviews

Write a Review

Operation Management Questions & Answers

  Associates in your department direct a racial slur

You are a manager, and you overheard one of the associates in your department direct a racial slur at another. The intended recipient of the remark didn't appear to have heard it.

  When should each be used

Osakwe, an enterprising student, has set up an internship clearinghouse for business students. when should each be used.

  What are the distinctions among procedural

What are the distinctions among procedural, interactional, and distributive justice? List ways in which you could increase each of these justice perceptions.

  Illustrate what general steps should hank follow in setting

Illustrate what general steps should Hank follow in setting up a continuous improvement program for company.

  Illustrate what type of information is contained in partner

Partnership agreement is a very important document for partnerships. Illustrate what type of information is contained in partnership agreement.

  What is important to you in terms of your personal work

What is important to you in terms of your personal work motivation? How do the things that motivate you fit with Starbucks' approach to motivating partners?

  Find ways to increase efficiency across the plants

As the COO of a manufacturing organization, you are confronted with a serious cash flow issue and you are being pressured to find ways to increase efficiency across the three manufacturing plants in the organization

  Work at stinson shipping was getting extremely hectic

Work at Stinson Shipping was getting extremely hectic. Tom Murphy, the loading dock manager, looked over the list of shipping documents that he needed to process and marveled at the increase in business over the past three months

  Elucidate how can janet plan for also avoid these risks

Elucidate how can Janet plan for also avoid these risks. Does likelihood of these risks affect Janet's actions. Elucidate how.

  Identify how each approach informs or impacts life

Identify how each approach informs or impacts life, particularly as you prepare for your senior years. Discuss benefits (pros) also shortcomings (cons) of each perspective. Identify which perspective helps you to make choices as you move toward your ..

  Describe the eventual outcome also is venture succeed

Describe the eventual outcome. Did the venture succeed. Were the peons or the big wigs right. In either case, briefly describe why the eventual result happened.

  How might company adjust for projects of differing risk

If a company, with a normal payback requirement of two years or less, uses subsequent techniques, explain how might company adjust for projects of differing risk in approval process.

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