How many orders will they place in a year

Assignment Help Operation Management

Reference no: EM131921795

Problem

Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $29 per unit.

They send orders electronically to the manufacturer, costing $39 per order and they experience an average lead time of eight days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent.

The average daily demand for the figurines is three units per day. They are open for business 250 days a year. The supplier decides to offer a volume discount. They will sell the crystal figurines at $9 per unit for orders of 375 units or more.

Answer the following questions:

a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time.

(Round your answer to the nearest whole number.) Number of units

b. How many orders will they place in a year? Number of orders per year

c. What is the average inventory? Average inventory units

d. What is the annual ordering cost? Annual ordering cost

e. What is the annual inventory carrying cost ?

Reference no: EM131921795

Questions Cloud

Jewish emancipation in the late eighteenth century : What were the arguments for and against Jewish emancipation in the late Eighteenth century?

What were the conditions that gave rise to hasidism : What were the conditions that gave rise to Hasidism in the 18th century? In what ways did it diverge from earlier practice and belief?

Make a whole physical examination in a comprehensive manner : Make a whole history and physical examination in a comprehensive manner with all its elements included: CC, HPI, PMH, FH, SH, MEDICATIONS and ALLERGIES.

Breakdown of the wall of separation between christian : Describe the major factors that led to the breakdown of the wall of separation between Christian and Jewish society. Explain why they were important.

How many orders will they place in a year : Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $29 per unit.

Where was martin luther king upbringing : Where was Martin Luther King upbringing, where did he grow up? What organizations was he involved in that shaped his becoming of a civil rights leader?

Capital asset pricing model to estimate risk for real estate : An analyst who looks at real estate decides to apply the capital asset pricing model to estimate the risk (beta) for real estate.

Evaluate research as the basis for decision-making : Evaluate research as the basis for decision-making to improve outcomes through translation into evidence-based practice.

Define the terms dislocation and dehumanization : Define the terms dislocation and dehumanization as they relate to slavery. Provide detailed examples of how these two processes

User Account

All Pages