A manufacturer produces milling machines

Assignment Help Operation Management

Reference no: EM131766578

A manufacturer produces milling machines. The milling bed screws necessary for each machine are produced by an outside supplier at a cost of $25 each. Five are needed each production day. The storage cost is 15%, while the cost to order is $25. Assume work occurs 240 days per year. If a 1 ½% discount is given on ordrs of 500 or more, should the discount be taken? What will the POQ be?

Reference no: EM131766578

Questions Cloud

Whenever possible to minimize health plan rate differentials : Why should providers seek whenever possible to minimize health plan rate differentials?

Net requirements and order release and order receipt dates : Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates.

Ordering decision relating to purchases of very important : Daddy's home, association currently faces the following ordering decision relating to purchases of very important item:

Description of the product/service and its major competition : The first part of the paper should provide a brief background of the company and a description of the product/service and its major competition.

A manufacturer produces milling machines : A manufacturer produces milling machines. The milling bed screws necessary for each machine are produced by an outside supplier at a cost of $25 each.

Calculate and decide if the discount should be taken : Calculate and decide if the discount should be taken.

Manufacturing produces drilling machines : A manufacturing produces drilling machines. The motors are purchased from an outside supplier.

Storage costs-order costs and total costs : Develop a chart that clearly indicates the difference in storage costs, order costs, and total costs for ordering once, twice, three times, four times,

Product development-created by firms for long term endurance : Which strategies in the current news is an example of product development and created by firms for long term endurance?

User Account

All Pages