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

Purchasing power of customers, This is determined by disposable personal ...

This is determined by disposable personal income( personal income minus direct taxes and other deductions ). Some people suggest the use of discretionary income in place of

Individual user interests - information resources, Individual User Interest...

Individual User Interests: More specific information about users could cover the following:  Subjects and associated interest - e.g. specific subjects, allied subjects;

Closed lood, give the procedure of tracing a closed loop

give the procedure of tracing a closed loop

Paired sample sign test - hypothesis testing , Paired sample  sign Test ...

Paired sample  sign Test Paired samples  sign test is applied  to a situation where two sample  are taken from  two population which  have continuous symmetrical distributi

Linear programming problem, Solve the following Linear Programming Problem ...

Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Operations research 2, management wants to know how many supervisors should...

management wants to know how many supervisors should be hired, and what could be the optimum workload distribution to be applied, given a number of constraints

Uses of mean deviation - measure of dispersion, Uses  of Mean  Deviation...

Uses  of Mean  Deviation Mean  Deviation  is rarely being used as a measure of dispersion. But  due to  easy  and  simplicity  in calculation. It  is rather  useful  in busin

Functions and objects of statistical average , Normal 0 false...

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

Replacement, an electric company which generates and distributes electricit...

an electric company which generates and distributes electricity conducted a study on the life of poles. tha appropriate life data are given in the following table: years after inst

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