Explain what is the economic order quality, Operation Management

Assignment Help:

Quick cheif cookers sell at an average [ace of 12500 per month. Each cooker costs the company $100. The annual carrying cost for each cooker is 10%. Each Each order that is placed by company costs 300, covering clerical and delivery cost. The order lead time is 6 days and the company is open for business 365 days per year.

1. What is the economic order quality?

2. What is the annual order cost?

3. What is te annual carrying cost?

4. At what inventory level should company place an order?

5. Company has the option of buying in quantities of 4000 at a price of 95 per unit. should they buy? Why or why not?


Related Discussions:- Explain what is the economic order quality

Explain how should you respond to the reporter, A manager at an architectur...

A manager at an architectural firm receives a call from a local newspaper. The reporter wonders how the firm wishes to respond to calls from two of its employees alleging racial di

Describe contract type selected was incorrect, This case study will be disc...

This case study will be discussed and reviewed in the Case Study discussion question for the week. Post your responses to the questions at the end in the Case Study discussion ques

Efforts to reduce materials waste & procure materials, 1. In the hypothetic...

1. In the hypothetical manufacturing company (figure) what other actions do you think management might take in addition to their efforts to reduce materials waste, procure material

Explain fishbone diagram conflict, Activity Instructions There are two part...

Activity Instructions There are two parts to this assignment. Part 1: Revise the previous flowchart you created based on any new or different information you gleaned during the las

Explain the elements in a hrmis, Describe the elements in a HRMIS and the r...

Describe the elements in a HRMIS and the role such a system plays in an organization's ability to meet its goals. If you are familiar with such a system, what information does it p

Calculate electrical, Test results from an electronic circuit board indicat...

Test results from an electronic circuit board indicate that 50% of board failures are caused by assembly defects, 30% are due to electrical components, and 20% are due to mechanica

What are disadvantages of using single sourcing strategies, What are the di...

What are the disadvantages of using single sourcing strategies? Disadvantages of using single sourcing strategies: a. Could merely one single supplier into the industry

Discuss regarding the interval estimate, Increasing the size of the samples...

Increasing the size of the samples in a study to estimate the difference between two population means will increase the level of confidence that a decision maker can have regarding

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