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

Describe delaying completion of the project, Using the data in Table 13-1, ...

Using the data in Table 13-1, what is the latest possible time that C may be started without delaying completion of the project? Table 13-1 The following represents a project with

Explain advantage most likely to endure over time, 1).What are the primary ...

1).What are the primary implications of the material discussed in this chapter for strategy formulation? 2). When is a company's competitive advantage most likely to endure over ti

Explain whole foods market has a mission, 1. What evidence do you find in t...

1. What evidence do you find in this case, either explicitly or implicitly, that indicates that Whole Foods Market has a mission, core values, or is practicing decision-making that

Explain what goes wrong in organizations, During the past five weeks, you h...

During the past five weeks, you have written several papers examining various organizational behaviour problems that materialize in organizations. Review all of those papers and ot

Service sector - financial services, Service Sector - Financial Services ...

Service Sector - Financial Services 1. Explosion of customer choice  2. Globalisation of financial services - extensive use of computer technology  3. Innovation on bot

Describe the objectives of trade unions, Describe the objectives of trade u...

Describe the objectives of trade unions. The Objectives of trade unions are: (i) To take labour out of the competitive procedure because when a number of workers freely comp

Wlan standard is compatible with what other wlan standard, The 802.11g WLAN...

The 802.11g WLAN standard is compatible with what other WLAN standard? a. Bluetooth b. 802.11a c. 802.11b d. HomeRF

Explain improve matters and rectify the injustice, What could you or the pe...

What could you or the person who was treated unfairly have done to improve matters and rectify the injustice on the spot?

Describe conduct a goodness-of-fit test analysis, A survey performed by Sim...

A survey performed by Simmons Market Research investigated the percentage of individuals in various age groups who indicated they were willing to pay more for environmenlal.ly frie

Explain current business operating on a global scale, Introduce a new speci...

Introduce a new special form of insurance for current business operating on a global scale with a diverse work force, which includes virtual employees.

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