User Account

All Pages

How many units should be ordered each time an order is place

Assignment Help Econometrics
Reference no: EM13184722

Everett Mann's Dream Store sells waterbeds and supplies. The best selling bed in the store has an annual demand of 400 units. The ordering cost is $40, while the holding cost is $5 per unit per year. There are 250 working days per year, and the lead-time is 6 days.
(a) To minimize total cost, how many units should be ordered each time an order is placed?
(b) If the holding cost per unit was $6 instead of $5, what would the optimal order quantity be?

Reference no: EM13184722

Questions Cloud

State what species are present at the halfway point : what species( ions/molecules)are present at the halfway point in the titration tword the stoichometric point in a.
State what is the empirical formula for an prganic compound : What is the empirical formula for an prganic compound whose percentage composition is 40.0% carbon
What is the hotels average daily rate : What is the hotel's average daily rate, if the property's percentage of rooms revenueto total revenue is 62.9% and occupancy percentage is 67.8%?
Prepare the entries for traditional and backflush costing : Prepare the j entries for traditional and backflush costing. For backflush costing, assume there are 2 trigger points: 1). the purchase of raw materials and 2). the completion of the goods.
How many units should be ordered each time an order is place : Everett Mann's Dream Store sells waterbeds and supplies. The best selling bed in the store has an annual demand of 400 units. The ordering cost is $40, while the holding cost is $5 per unit per year. There are 250 working days per year, and the le..
Should the ceo set up as a profit center : The CEO of Always Round Tire has decided to open a battery division. He thinks that batteries would sell well with tires at their outlets AND that Always Round's quality reputation will be transferred to the batteries. Should he set up the new div..
Explain nicotine is a poisonous and addictive compound : Nicotine is a poisonous, addictive compound found in tobacco. A sample of nicotine contains 6.16 mmol C, 8.56 mmol H, and 1.23 mmol N ( mmol = millimol = 10-3 mol).
Explain acetic anhydride to synthesize aspirin : In an experiment, 2.50 g salicycylic acid was reacted with excess acetic anhydride to synthesize aspirin, as shown below.
How we perceive ourselves versus how others perceive us : When groups are formed, we want to consider how organizational structures, processes, and situations impact on group motivation, politics, and goals achievement. Alignment of all of these structural, personal, and interpersonal components will hel..

Reviews

Write a Review

Econometrics Questions & Answers

  Find the cost of mining in terms of wheat

US and Canada can both grow wheat and can do mining. Use the following table to look for which country has a comparative advantage in mining. (Hint: Find the  Absolute  Absolute Cost in US  Cost in Canada Wheat $5     C$8 Mining   $10  C$12  c..

  Fine the density

Consider the density Fx(x)= exp{-x} if x>_0, and 0 otherwise; Find: f(y) if Y = 2X+1, Find f(y) if Y = X^2, Find f(y) if Y = X, Find f(y) if Y = lnX

  Cost of holding inventory

To ensure that correct size of heart valve is available for heart surgery, Heart Plus, maker of valves employs salespeople to place and maintain inventories at hospitals in its market.

  Derive the expression for the profit maximization

A producer produces good y using a single input x according to the production function y=x^a where 0

  Kuznets hypothesized in economic development

In the name of Simon Kuznets is the concept that the relationship in GDP and inequality is nonlinear. Kuznets hypothesized three phases in economic development.

  Determine consumption per worker

Calculate output per worker and consumption per worker for each country. Which country has the highest output per worker? The highest consumption per worker?

  Determine the net after-tax cash flows

An auto-part manufacturing company is considering the purchase of an industrial robot to do spot welding, which is currently done by skilled labor. The initial coast of the robot is $250,000, and the annual labor savings are projected to be $140,0..

  Explaning setting price and applications

Explain each of primary methods used for setting value, describing its applications, strengths and weaknesses, show the formula and compute an example for each method.

  Find where demand and supply curves intersect

1. The three fundamental economic questions of what, how, and for whom: a-exist because of scarcity. b-are much more serious in a socialist system. c-are not serious in a capitalistic system. d-are not relevant in the industrialized world of today.

  Find the number of months required tp pay off the balance

For the same loan described under Q3, the individual decides that instead of selling the house after the 71st payment, to keep it and shorten the pay off period by increasing the montly payment by $150 each month. What is the number of months re..

  What restrictions must be placed on the parameters

Solve for the equilibrium values of Q and P (So find Q* and P*) as a function of a1, a2, b1, b2. And what restrictions must be placed on the parameters a1b2 and a2b1 so that the value of Q* above makes economic sense?

  Estimating the expected return

The joint probability distribution on the returns of two securities X and Y is demonstrate in the table below.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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