Their total cost of ordering and carrying the flour

Assignment Help Financial Management

Reference no: EM131366880

Although the bakery still buys flour in 25-pound bags, their business has changed to need an average of 5000 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $6.50 per order. Annual carrying costs are $52 per bag.

What will be their total cost of ordering and carrying the flour?

Reference no: EM131366880

Questions Cloud

Shipping alternatives-two-day freight and five-day freight : A manager at Strateline Manufacturing must choose between two shipping alternatives: two-day freight and five-day freight. Using five-day freight would cost $135 less than using twoday freight. The primary consideration is holding cost, which is ..

Use for incoming parts for kanban system : A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month. The process will have a usage rate of 82 pieces per hour. Because the process is new, the manager has assigned an ineffici..

Compute the takt time in minutes for system : Compute the takt time in minutes for a system where the total time per shift is 1100 minutes, there is one shift per day, and workers are given 2 x 19 minute breaks and 30 minutes for lunch. Daily demand is 530 units. (Keep two decimal places in your..

The current equipment allows your production line : The current equipment allows your production line to assemble 1500 widgets per day with a takt time of 3.95 minutes. A vendor is proposing their new equipment which would allow you to assemble 1840 widgets per day. What would the new takt time be?

Their total cost of ordering and carrying the flour : Although the bakery still buys flour in 25-pound bags, their business has changed to need an average of 5000 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $6.50 per order. Annual carrying costs are $52 per bag. ..

Calculate the safety stock assuming a risk level : In your role as production planner, you have experienced too many stock outs on one particular item. This item has 320 pints of demand during the lead time and a standard deviation during the lead time of 13.0 pints. Calculate the Safety Stock assumi..

Incremental holding costs for shipping : Determine the 2 day incremental holding costs for shipping 75 boxes of parts when each box has a price of $235 and holding costs are 27% of the total shipment value. The shipping costs are $335 for 1 day and $290 for 3 days.

What will be their total cost of ordering and carrying nails : Our home construction company still buys nails in 15-pound boxes but now we use an average of 3575 boxes a year. Preparing an order and receiving a shipment of nails involves a cost of $0.65 per order. Annual carrying costs are $0.4 per bag. What wil..

Are people always company most valuable asset and why : Are people always a company’s most valuable asset and WHY? How do human resource operations impact a company’s HR business strategy? Discuss how companies can leverage diversity to their strategic advantage and provide specific examples/scenarios. De..

User Account

All Pages