What is the optimum order quantity

Assignment Help Operation Management

Reference no: EM132184585

An automotive parts suppliers manages a warehouse that specializes in disc brakes. The manager is interested in calculating the optimum order quantity (EOC) of a specific skew. She knows the following information: the annual usage is $3,225; the administrative costs per order is $140 and the carrying cost of the inventory is 0.2. a. What is the optimum order quantity (EOQ)? Show all steps. b. A year later, the administrative costs increased to $150 per order and the annual usage increased to $4,000. However, the company was locked into the EOQ. To what value should the carrying costs of the inventory be revised?

Reference no: EM132184585

Questions Cloud

Limitations of range of approaches to effective leadership : Differentiate the strengths and limitations of a range of approaches to effective leadership.

Compose business letter to an external customer : Compose a business letter to an external customer, Your creativity can show in this assignment since you will make up the reason for the contact

Discuss the central theme of core strategy for business : Explain the concept of a business and the importance of a strategic mission. Discuss the central theme of a core strategy for a business.

About presidency and bureaucracy-what is power to persuade : About Presidency and bureaucracy. What is the power to persuade? How are these powers supplemented by the power to persuade?

What is the optimum order quantity : What is the optimum order quantity (EOQ)? To what value should the carrying costs of the inventory be revised?

Improve the operations of criminal justice system : The President has asked your advice on how to improve the operations of the criminal justice system.

First challenge of organizational development survival : Discuss the first challenge of organizational development, “Survival,” and what steps leadership should implement to overcome these risks.

What are your thoughts on conscientious capitalism : What are your thoughts on conscientious capitalism and what does it have to do with the DuPont case.

Element of writing termination messages in workplace : Which one of the following is not an essential element of writing termination messages in the workplace? A letter rejecting a job applicant should.

User Account

All Pages