Optimal order quantity and the minimum annual cost

Assignment Help Operation Management
Reference no: EM13964199

Bell computers purchases integrated chips at 350 per chip. the holding cost is $36 per unit per year. the ordering cost is $119 per order, sales are steady at 400 per month. the company supplier, rich blue chip manufacturing inc, decides to offer price concession in order to attract large orders. the price structure is shown below.

Quantity purchased 1-99 units price per unit $350, quantity purchased 100-199 unit price per unit $325, and quantity 200 or more units price per unit $300.

The optimal order quantity after the change in the holding cost calculation is ______

The total annual cost for bell computers to order, purchase and hold intergrated chips is_______

What is the optimal order quantity and the minimum annual cost fpr Bell computers to order, purchase and hold these integrated chips?

The optimal order quantity after the change in price structure is _________ units?

The total annual cost for Bell computers to order, purchase and hold the integrated chips is $____________?

Bell computers wishes to use a 10% holding cost rather than the fixed $36 holding cost in part a. What is the optimal order quantity, and what is the optimal annual cost?

Reference no: EM13964199

Questions Cloud

Supervisors to conduct risk assessments : Some organizations have formed crisis management teams comprised of both hourly workers and supervisors to conduct risk assessments, develop action plans, and perform crisis interventions. Are you concerned that this might be a crisis situation—akin ..
What is the total annual cost of managing the inventory : Joe Henry's machine shop uses 2460 brackets during the course of a year. these brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Given the EOQ, what is the total annual cost of managing the i..
Purpose of return on marketing investment : Marketing Metrics. Student understands the purpose of Return on Marketing Investment for the company, and can identify at least three metrics that should be used in a product or service offering to measure the effectiveness of marketing strategies.
Wheel bearings that will be in inventory at wheel-rite : Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 11,000 wheel barings each year. This order has been stable for some time. What is the optimum produc..
Optimal order quantity and the minimum annual cost : Bell computers purchases integrated chips at 350 per chip. the holding cost is $36 per unit per year. the ordering cost is $119 per order, sales are steady at 400 per month. What is the optimal order quantity and the minimum annual cost fpr Bell comp..
Level plan that uses inventory to absorb fluctuations : Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a normal capacity of 130 engines per month. Compare the costs ..
Discuss the dallas cowboys corporate culture : Discuss the Dallas Cowboys’ corporate culture. Give examples of such things as artifacts, rituals, ceremonies, stories, and legends. Discuss the Cowboys’ in the context of the Organizational Culture Profile Dimensions and Characteristics. How was Jon..
What is the annual cost of ordering and holding inventory : Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 6,050 units per year. What is the optimal number of days in be..
Essentials of business processes and information systems : Apply a concept from each of the chapters in "Essentials of Business Processes and Information Systems". Write a short summary (2 to 4 pages per section) how this company may apply this concept to its business.

Reviews

Write a Review

Operation Management Questions & Answers

  Write a brief explaining strengths and weaknesses of both

You would like to set up a Web site to sell towels, linens, pottery and tableware from Portugal and are examining services for hosting small business Internet storefronts. Write a brief report indicating your choice and explaining strengths and wea..

  Stage of new-product development

A potential marketer of new shower enclosures coated with Teflon asks consumers, "Do you understand how the addition of Teflon will benefit you?" and "Would this type of shower enclosure solve a cleaning problem for you?" This marketer is in the ____..

  Finding initial basic feasible solution

Consider the cutting stock problem that arises when a company manufactures sheets of standard width 100 and has commitments to supply 40 sections of width 40, 60 sections of width 24, and 80 sections of width 18.

  Example of how poor escalation of a project problem

Provide an example of how poor escalation of a project problem can create additional problems.

  Create the mrp tables for all parts of the cd cabinet

Using the MRP Forms - create the MRP tables for all parts of the CD cabinet for a 12 week planning period. Note: You need to adjust the forms to work with this assignment by adding the required information

  Minimize effect of personal prejudice on seller selection

Which of the following is a method for quantifying qualitative data in order to minimize the effect of personal prejudice on seller selection?

  Main factors contributing to the global economic growth

One of the main factors contributing to the global economic growth has been that more third world countries have joined the global market. We know there are economical gains but need to specify what these political gains are. There are still some cou..

  Efficiency and effectiveness of business operations

How can your company apply operations management (OM)? Discuss 2 examples of how OM is used to improve the efficiency and effectiveness of business operations.

  Explain the ways feasible solutions can be attained

Define concentrated segmentation and geographic segmentation, state the advantages and disadvantages of each one, and give an example of each one.

  Write down a 700- to 1050-word paper in which you describe

write a 700- to 1050-word paper in which you explain operation managements role in business today. include the

  Explain strategy formulation and implementation

Strategy Formulation and Implementation, Strategic Issues, Alternatives, Recommendation, Implementation, Evaluation

  Supply chain structure in the given situation

What are the inputs to and outputs of a supply chain? Why do you suggest this supply chain structure in the given situation? What are its benefits? How will you ensure that your supply chain provides a smooth flow of resources?

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