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

Common or random causes - causes of variability, Common or Random Causes - ...

Common or Random Causes - Causes of Variability Consider throwing a pair of dice. The possible outcomes range from 2 to 12, but with different probabilities of occurrence (see

Explain how would you handle this situation, New Employee Issue You have a ...

New Employee Issue You have a new employee who is in his/her probationary period, the first 90 days of employment. The employee has missed several days of work and has been late at

Depict a decision tree for problem, A manager is trying to decide whether t...

A manager is trying to decide whether to build a small medium, or large facility. Demand can be low, average, or high, with the estimated probabilities being 0.25, 0.40, and 0.35,

Describe what you understand by supply chain management, Question : (a)...

Question : (a) Describe what you understand by supply chain management. (b) An important decision facing most purchasing managers is whether to source each individual produc

Plant location evaluation methods.., i need calculated examples using the m...

i need calculated examples using the methods of plant location evaluation.how are they calculated?

Line balancing, what do you understand by line balancing what happens if ba...

what do you understand by line balancing what happens if balance

Define current inventory control system for football helmets, Tune Football...

Tune Football Helmets Company is considering changing its current inventory control system for football helmets. The information regarding the helmets is given below. Demand = 2

Explain what is the resulting productivity ratio, The total output from a p...

The total output from a production system in one day is 900 units and the total labour necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure,

How is value of product effective on operational strategy, How is the value...

How is the value of product effective on operational strategy? Value is the cause why customers choose one rivals product over other, when an organisation can give certain uniq

Explain what qualities do you think supervisors take, What qualities do you...

What qualities do you think supervisors take into consideration when choosing whom to give a promotion to at work?

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