Larger quantity purchases, Operation Management

Assignment Help:

A vendor's gives discounts to entice larger quantity purchases.  The price breaks are as follows:

Order Size    Discount    Unit Price    
0 - 40              0%           $30
50 - 99            5%           $28.50
100 or more    10%          $27

If your store's yearly demand is 150 units, ordering cost is $20, and yearly inventory carrying cost is 25 percent of the unit prices, what order quantity policy should you follow?


Related Discussions:- Larger quantity purchases

Five focusing steps of theory of constraints, Five Focusing Steps of Theory...

Five Focusing Steps of Theory of Constraints Evaporating clouds  This is a term used to describe a methodology developed by Goldratt to resolve conflicts in a 'win-win' m

How managers use queuing models in decision making process, Problem : D...

Problem : Describe how managers may use Queuing Models in the decision making process. Consider there is only one photocopy machine in your organisation. On a typical day, a

Which is a group of products that are closely related, A _____ is a group o...

A _____ is a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the s

Explain capacity is the maximum rate of output of a process, 1. Capacity is...

1. Capacity is the maximum rate of output of a process. 2. Capacity decisions should be made separate from strategic decisions. 3. Capacity can be expressed by output or inpu

Explain how training and education of work forces are differ, Explain how t...

Explain how the training and education of work force differ from that of the middle level managers. The training and education of work force differ from that of the middle le

Describe how does national culture affect strategy, How does national cultu...

How does national culture affect strategy? To what extent do different approaches to strategy, different ways of thinking about strategy, reflect different underlying cultural assu

Desicion making chapter 1, analyze the decision tree in figure A.8 what is ...

analyze the decision tree in figure A.8 what is the expected payoff for the best alternative? first be sure to infer the missing probabilities

ERP, DESCRIBE THE ENTERPRISE RESOURCE PLANNING

DESCRIBE THE ENTERPRISE RESOURCE PLANNING

Explain significant barrier to good customer service, Is employee turnover ...

Is employee turnover ever a significant barrier to good customer service? Why, or why not?

Compute the average number of customers waiting at lhs, During busy periods...

During busy periods, a new customer walks into LHS every 15 mins. (with a standard deviation of 15 mins). At SHC, a customer walks in every hour (with a standard deviation of 1 hou

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