What is the annual ordering cost

Assignment Help Operation Management
Reference no: EM13223721

The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor will offer.
>For a small order (2,000 pieces or less) her vendor quotes a price of $1.80/piece.
>If she orders 2,001 to 5,000 pieces, the price drops to $1.60/piece.
>5,001 to 10,000 pieces brings the price to $1.40/piece, and
>10,001 and above reduces the price to $1.25/piece.
Lisa's order costs of $205 per order, her annual holding costs are 5%, and the annual demand is 47,000 pieces. For the best option, (the best option is the price leve that results in an EOQ within the acceptable range).
A) What is the optimum ordering quantity?
B) What is the annual holding cost?
C) What is the annual ordering cost?
D) What are the annual cost of the silverware with an optimal order quantity?
E) What is the total annual cost, including ordering, holding, and purchasing the silverware?

Reference no: EM13223721

Questions Cloud

How would a homogenous approach arguments : compose an argument for or against the idea that the peasantry constitutes a uniform social category. How would a homogenous approach, a heterogeneous approach, or a differentiation approach that considers political economy support your argument
Evaluate the concept of administrative liaison officer : Evaluate the concept of "administrative liaison officer" as a strategy for achieving integration. Is this an example of the mutual adjustment strategy?
Compute the mass of sodium hydroxide : Calculate the mass of sodium hydroxide that must be added to 1.00 L of 1.00 M HC2H3O2 to double the pH of the solution (assume that the added NaOH does not change the volume of the solution).
Describe how this significance has shifted over time : Why is discipline the most significant issue for union and management? Describe how this significance has shifted over time.
What is the annual ordering cost : What is the total annual cost, including ordering, holding, and purchasing the silverware?
Explain ionization of nh3 : What mass of NaOH (s) must be added to 1.0 L of 0.050 M NH3 to ensure that the percent ionization of NH3 is no greater than 0.0010%? Assume no volume change on addition of NaOH.
What critiques have brought to bear on bohannans explanation : Reference Paul Bohannan's work among the Tiv, and explain the consequences of the appearance of money on Tiv modes and spheres of exchange. Secondly, what critiques have been brought to bear on Bohannan's explanation
Define scalability : A key factor that affects technology decisions is scalability. Define scalability. Explain the difference between high scalability, infinite scalability, and low scalability.
Explain the concept of core competencies : Explain the concept of core competencies. What are the core competencies of Peninsula College?

Reviews

Write a Review

 

Operation Management Questions & Answers

  The carousel ride

At a carnival, the carousel ride has a problem with keeping the mechanical horses working. Repair technicians can be hired at a rate of $30 per hour, while working as only one team. This means the technician will work alone. If two or more techs are ..

  Illustrate what cooperative strategies constitute

Illustrate what cooperative strategies constitute and in illustrate what circumstances you would use which strategy. In case study, illustrate what cooperative strategies are being used by business.

  How do distinctions between value disciplines

Are long-term objectives helping the enterprise make appropriate strategic choice decisions? How do distinctions between value disciplines, and generic and grand strategies help build competitive advantage?

  Adding a room to your home

Using alternatives specified in the PMBOK® Guide, discuss what kind of contract pricing might be best for the following procurement situations. Arrange to select a topic "round-robin style" so that you select the next topic that has not already been ..

  Finding the best economical plan

Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate plan,

  Graph an objective function line

Consider the following Linear Programming Problem: MIN Z= 6x1 + 4x2 Graph an objective function line. What is the optimal solution? What is the optimal objective value?

  Describe the characteristics of firm with long cash cycle

What are some of the characteristics of a firm with a long cash cycle? Saunders Corp. has a book net worthof $13,205. Long-term debt is $8,200. Net working capital , other than cash, is $4,205. Fixed assets are$17,380.

  Summarize the advantages and limitations of conjoint

summarize the advantages and limitations of conjoint analysis for obtaining preference data from customers.

  What do you think is the purpose of the accident

What do you think is the purpose of the accident investigation? Explain how the NTSB can be a reactive organization in terms of accident/incident investigation (after the fact) yet, still be a proactive safety organization.

  Necessary material for production from the previous

A workstation must produce 400 units an hour. It takes 24 minutes to receive the necessary material for production from the previous workstation.

  Discuss importance of completing post project reviews

Assess the importance of completing post-project reviews, and determine what project documentation must be updated as the result of the review meeting.

  Explained on the help screen for the cash flow statement

As explained on the Help screen for the Cash Flow Statement, if a company generates revenues of $240 million in Year 11, revenues of $280 million in Year 12

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