Calculate required units to minimize cost

Assignment Help Operation Management

Reference no: EM13104791

M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 250 units, and this is constant throughout the year. Carrying cost is estimated to be $1 per unit per year, and the ordering cost is $20 per order.
a) To minimize cost, how many units should be ordered each time an order is placed?
b) How many orders per year are needed with the optimal policy?
c) What is the average inventory if costs are minimized?
d) Suppose that the ordering cost is not $20, and Cotteleer has been ordering 150 units each time an order is placed. For this order policy (of Q = 150) to be optimal, determine what the ordering cost would have to be.

Reference no: EM13104791

Questions Cloud

Determine the work done on the gas : An ideal gas is compressed from a volume of 400 cm^3 to a volume of 150 cm^3 slowly and isothermally in a piston-cylinder system. If the final pressure is 100 kPa, determine a) the work done on the gas and b) the heat transfer (specify whether the..

Creating calculated field to display the age value : If a field is calculated, everyone, where is the expression for that calculation going to be coded? There are a couple of options.

What angle would the single rope make : A car is being pulled out of the mud by two forces that are applied by the two ropes. The dashed line in the drawing bisects the 30.0° angle.

Write an expression for the absolute uncertainty : Suppose a formula for gain in heat energy of an object is H = m(A - B), where m = mass and (A - B) is its rise in temperature between A degrees and B degrees (as in #4). Write an expression for the absolute uncertainty, delta-H, in terms of m, del..

Calculate required units to minimize cost : M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances.

Express the directional angle as an angle : The three displacement vectors in the drawing have magnitudes of A = 5.47 m, B = 5.43 m, and C = 3.91 m. Find the resultant ((a) magnitude and (b) directional angle) of the three vectors by means of the component method. Express the directional an..

What would be the weight of the spherical mass : Assume that the earth is a uniform density spherical mass. (This assumption is not correct but we will use it for simplicity in working the problem.)

Probability that each will pass the exam : If there are 500 students in the school, what is the probability that everyone will pass the exam

Industrial development-relationship northern-southern states : In what ways and to what extent was industrial development from 1800 to 1860 a factor in relationship between northern and southern states?

User Account

All Pages