User Account

All Pages

1 jan kottas is the owner of a small company that buys and

Assignment Help Operation Management
Reference no: EM13358287

1) Jan Kottas is the owner of a small company that buys and resells electric knives used to cut fabric.  The annual demand is for 8,000 knives, and Jan is currently buying from Knives-R-Us.  The ordering cost is $100 per order.  The carrying cost per year is 4% of the acquisition cost of the knife, which is $20.00.

Jan has been approached by Knives-R-Us about buying knives under a new pricing schedule.  One option is to order the knives in quantities between 1400 and 1599.  If she does this, Knives-R-Us will lower the acquisition price to $19.75 each.  If she buys 1600 or more at a time, the company will lower the price to $19.50.  Of course, for all other quantities she can still buy the knives at $20.00 per knife.

If your order quantities are in fraction of units, please leave them as such. 

a)  Considering the total cost, composed of the holding cost and ordering cost and including the acquisition cost of the knives, how many should she buy per order to realize the lowest total cost? 

b)  Provide the lowest total cost for each of the three price options:  $19.50, $19.75, and $20.00.  Include the holding, ordering and acquisition cost.  

Reference no: EM13358287

Questions Cloud

4 msa computer corporation manufactures three models of : 4 msa computer corporation manufactures three models of computersnbspnbsp the alpha4 beta5 and the delta6.nbsp the firm
3 electrofans has the following orders for two of its fans : 3 electrofans has the following orders for two of its fans. for its b style fan 20 fans in week 5 50 in week 7 and 150
2 the austin texas plant of computer products produces : 2 the austin texas plant of computer products produces external hard drives for personal and small business
Internet backbone network access point and nspwhat is the : internet backbone network access point and nspwhat is the relationship between the internet backbone a network access
1 jan kottas is the owner of a small company that buys and : 1 jan kottas is the owner of a small company that buys and resells electric knives used to cut fabric. nbspthe annual
Describe a personal computer that someone may have at home : describe a personal computer that someone may have at home. what kind of hardware components are you using or have used
It is common practice to categorize computers into groups : it is common practice to categorize computers into groups such as personal computers network servers network computers
Research on distributed systemsi have the task and need : research on distributed systemsi have the task and need help to start with a paper discussing whether distributed
Nbspq explain henry assael model of buying decision : nbspq explain henry assael model of buying decision behaviour along with the diagram.nbspexplain in 2 pages

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd