Explain what order size would you recommend, Operation Management

Assignment Help:

A manager just received a new price list from a supplier. It will now cost $1.00 a box for order quantities of 801 or more boxes, $1.10 a box for 200 to 800 boxes, and $1.20 a box for smaller quantities. Ordering cost is $82 per order and carrying costs are $10 per box a year. The firm uses 3,650 boxes a year. The manager has suggested a "round number" order size of 800 boxes. The manager's rationale is that with a U-shaped cost curve that is fairly flat at its minimum, the difference in total annual cost between 800 and 801 units would be small anyway. What order size would you recommend? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)


Related Discussions:- Explain what order size would you recommend

Explain cause are linked to employee disciplinary actions, Identify how the...

Identify how the issues of due process and just cause are linked to employee disciplinary actions

Explain responsibility towards importers and exporters, The U.S. State Depa...

The U.S. State Department has some responsibility towards Importers and Exporters. What are these responsibilities?

Explain what are the four steps in the basic approach, What are the four st...

What are the four steps in the basic approach to process design that some companies use

Explain what will her total variable cost be, Gina Fox has started her own ...

Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from

Define the key planning factors for competitive success, What are the key p...

What are the key planning factors for competitive success? Provide an example of an organization that has achieved competitive success through planning. Provide an example of an or

Explain design capacity would be needed to achieve, In a job shop, effectiv...

In a job shop, effective capacity is only 49 percent of design capacity, and actual output is 60 percent of effective output. What design capacity would be needed to achieve an act

Which amendment has had the most impact throughout history, What are the fa...

What are the facts of the case? What is the key constitutional issue presented? Do you agree or disagree with Angel Raich's postion? Review the amendments to the U.S. Constituti

Explain the probability that the second item is defective, A production pro...

A production process is known to produce a particular item in such a way that 5% of these are defective. If two items are randomly selected as they come off the production line, wh

Simulation, Which of the following probability distributions cannot be simu...

Which of the following probability distributions cannot be simulated ?

Explain what is the efficiency, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE

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