Explain humidity can be controlled, Operation Management

Assignment Help:

Company A uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Company A uses 800 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $50 per order. The cost schedule of 2 suppliers are as follows: VENDOR 1 VENDOR 2 QUANTITY PRICE/LB QUANTITY PRICE/LB 1-499 $17.00 1-399 $17.10 500-999 16.75 400-799 19.85 1000 + 16.50 800-1,199 16.60 1200 + 16.25. a) What is the economic order quantity for each supplier? b) What quantity should be ordered, and which supplier should be used? c) What is the total cost for the most economic order size? d) What factor(s) should be considered besides total cost?


Related Discussions:- Explain humidity can be controlled

Any real problem may be self problem apply the system aprf, any real proble...

any real problem may be self problem apply the system approach model to develop the appropriate solution for this problem

Explain how often do you think very favourable, How often do you think very...

How often do you think very favourable, intermediate, or very unfavourable situations occur to leaders in real life? Based on Fiedler's theory

Explain organizational structure of your ideal work location, Tell me what ...

Tell me what the organizational structure of your (Ideal) work location would look like, using the terminology of this chapter 17. Use terms like mechanistic, organic, open, closed

Objectives of good layout, Objectives of Good Layout Any of the follow...

Objectives of Good Layout Any of the following objectives might be achieved through a good layout: Provide enough production capacity. Reduce material handlin

Transportation, In VAM method when two penalties are same then which one is...

In VAM method when two penalties are same then which one is to be selected

Explain stanley milgram''s famous experiment, Describe Stanley Milgram's fa...

Describe Stanley Milgram's famous experiment. What are its most significant implications?

Benchmarking, I need an assignment regarding benchmarking in Operations Str...

I need an assignment regarding benchmarking in Operations Strategy

Explain what is the optimal opder quantity for coffee, A special coffeehous...

A special coffeehouse sells Colombian coffee at a fairly steady reat of 30 pounds per month. The beans are purchased from a local supplier for $3.20 per pound. The coffeehouse esti

What are the advantages of a permanent arbitrator, What are the differences...

What are the differences between the FMCS and the AAA in their methods of selection of arbitrators? What are the advantages of why some employers and unions contract the use of a p

Write Your Message!

Captcha
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