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

List few of the strategic issues in supply chain management, The importance...

The importance of Supply Chain Management cannot be underestimated because it ensures that the right materials are at the right place at the right time at a minimal cost and maximu

Explain what are some of the positive and negative impacts, What are some o...

What are some of the positive and negative impacts of federally mandated socioeconomic programs, goals, and quotas within the federal government contracting process?

How minimizes the number orders waiting in the queue, Which of the followin...

Which of the following rules maximizes the number of orders processed in a center and minimizes the number orders waiting in the queue? Shortest operation next First-come/fir

Explain applicable federal regulations relating to kickbacks, Identify and ...

Identify and discuss applicable federal regulations relating to kickbacks

Calculate first''s rop, First Printing has contracts with legal firms in Sa...

First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 12,500 pages of documents. The lead time for paper

Explain supportive organization, There are four critical success factors th...

There are four critical success factors that are important for effective risk management, supportive organization, comment people, appropriate methods, tools and techniques, and si

Define cross-cultural communication, When referring to Cross-Cultural Commu...

When referring to Cross-Cultural Communication, what would be the best approach to dealing with a multicultural environment.

What is the capacity represented by dso, What is the capacity represented b...

What is the capacity represented by "DSO"? a. 56Kbps b. 64 Kbps c. 255 Kbps d. 768 Kbps

Dont know, Q. A textile manufacturer is interested in optimally determined...

Q. A textile manufacturer is interested in optimally determined inventories for cutting operations for a children’s product line. The production manager would like to establish th

Chart display the possible causes of the defective shipments, Boston Electr...

Boston Electric Generators has been getting many complaints from its major customer, Home Station, about the quality of its shipments of home generators. Daniel Shimshak, the plant

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