Inventory Control Model, Operation Research

Assignment Help:
1. A local university purchases exercise books to give to their students. Instead of a fixed unit cost, their supplier quotes the following discount pricing:

Order quantity Unit Price
0 – 5000 £3.00
5001 – 10000 £2.96
10001 and over £2.92

An annual holding cost is estimated to be 20% of the purchase price. The university incurs a fixed order placement, transportation and receiving cost of £100 each time an order is placed, regardless of the order quantity. Annual demand for exercise books is 10000.
The discount for the 10001-unit minimum order quantity looks tempting. However, realising that higher order quantities result in higher inventory holding cost, the university should prepare a through cost analysis before making a final ordering recommendation.
Determine the quantity of exercise books the university should order each time it makes an order in such a way as to minimise the total cost incurred.

Related Discussions:- Inventory Control Model

Waiting queques, During busy times, 60 potential customers per hour arrive ...

During busy times, 60 potential customers per hour arrive at the booth (assume a Poisson distribution). A booth worker takes 5 minutes, on average, to meet the information needs of

Performance analysis of video call using skype, Description      Skype i...

Description      Skype is currently the most popular VoIP software in the world. Existing research has indicated that Skype can provide better voice/video quality in adverse net

Machine tabulation, Machine  Tabulation This methods  of tabulating i...

Machine  Tabulation This methods  of tabulating information  is generally used in  case of extensive  large scale  surveys. Mechanical sorting and tabulating equipments and su

#title.sum., a company produces 150 cars. but the production rate varies wi...

a company produces 150 cars. but the production rate varies with the distribution.

the simplex method, In large sized linear programming problems, the ...

In large sized linear programming problems, the solution cannot be obtained by the graphical method and hence a more systematic method has to be developed to find

Determine the optimal assignment., #questiSix Operators are to be assigned ...

#questiSix Operators are to be assigned to five jobs with the cost of assignment in Rs. given in the matrix below. Determine the optimal assignment. Which operator will have no ass

Chi square test - hypothesis testing, Chi Square Test ( X 2 ) Chi Squ...

Chi Square Test ( X 2 ) Chi Square Test Defined  the chi square test is one  simplest  and most  commonly  used non parametric tests in statistical work. The Greek letter X 2

Demands of logic and objective procedure, The scientific methods is thus ...

The scientific methods is thus based on certain basic postulate which can be stated as under: a. It relies on empirical evidence: b. It utilizes relevant concepts;

Mip, procedure of mip

procedure of mip

Assignment problem, a c++ program to implement assignment problem??????????...

a c++ program to implement assignment problem???????????

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