The intent is to minimize total annual costs

Assignment Help Operation Management

Reference no: EM131662464

A company will begin stocking an industrial component. Expected annual demand is 4,000 units. The parts can be purchased in one of three price categories: Zero to 399 costs $25.00, 400 to 999 costs $24.75, and 1,000 and over costs $24.50. Ordering cost is $50.00 and annual holding cost is 35 percent of unit price per unit. What order quantity is optimal if the intent is to minimize total annual costs? Defend your answer and show the cost calculations.

Reference no: EM131662464

Questions Cloud

What are economic effects of the outcome in the given case : ECONOMIC D IMENSIONS. What are the likely economic effects of the outcome in this case? Explain.

What is the required kVA rating of the transformer : If you have a conventional two-winding transformer rated 120 V for each winding, what is the required kVA rating of the transformer

Determine the possible values : Suppose that A and B are sets with |A| = 3 and |B| = 5; both sets are drawn from a universe U with |U| = 11. Determine the possible values.

Is the dome real property or personal property : Vanessa Denai owned forty acres of land in rural Louisiana with a 1,600-square-foot house on it and a metal barn near the house.

The intent is to minimize total annual costs : What order quantity is optimal if the intent is to minimize total annual costs? Defend your answer and show the cost calculations.

Discuss the type of tangible personal property : An Example-New York Laws New York law defines lost property to include lost property, mislaid property, and abandoned property, whether it is cash, goods.

The african american athletes : A page paper proposing the analytical research topic, "The relationship between African American Athletes and SEC Schools.

What resources are available for organizational growth : Consider what resources are available for organizational growth and expansion. Assess what skills and knowledge are needed to access these resources.

Statement is not the assumption for policy : Which of the following statement is not the assumption for (Q, R) policy?

User Account

All Pages