Explain should wang take the quantity discount, Operation Management

Assignment Help:

Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit costs, and the ordering is $25 per order. If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. Should Wang take the quantity discount?

Related Discussions:- Explain should wang take the quantity discount

Explain what is framing and how frames work in negotiation, What is framing...

What is framing and how frames work in negotiation. Describe an example

Factors for best path for data among two points on a network, Name three fa...

Name three factors that a router must consider when determining the best path for data between two points on a network?

Explain average inventory level, 1. Custom Computers, Inc. assembles custom...

1. Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24 each and are ordered in quantities of 1500 units. Annual demand is 75

Explain purchasing process, Again, another point I would like to add are th...

Again, another point I would like to add are the ratings given to each game. During the purchasing process, CanGo has the ability to ask for I.D information to verify age. Sales mi

Explain stock outstanding, Assume a company has 10 million shares of stock ...

Assume a company has 10 million shares of stock outstanding and that its Income Statement for Year 12 is as follows: Income Statement Data Year 12 (in 000s) Net Revenues from Footw

What must a short-term or long-term consequence make, What should a short-t...

What should a short-term or long-term consequence make a difference in resolving an ethical dilemma?

Explain inventory decreases, What happens to inventory as the number of kan...

What happens to inventory as the number of kanban cards increases? Inventory decreases Inventory increases Inventory remains the same The number of kanban cards has no

Explain company to suspect there is unmet demand, Describe some of the cues...

Describe some of the cues that might cause a company to suspect there is unmet demand for its products or services. How would you design a test to determine whether your suspicions

Describe what is the reorder point, The injection moulding department of a ...

The injection moulding department of a company that operates 24x7 uses an average of 20 gallons of special lubricant per day. It takes two weeks for an order of lubricant to be del

Objectives of work measurement, Objectives of Work Measurement: 1. ...

Objectives of Work Measurement: 1. To determine the standard cost and as an aid preparing bidets. 2. To balance the crew activities of those job requirin

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages