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1. A distribution center sells Sony televisions to retailers at a constant demand rate of 20,000 units per year. It costs the distribution center $500 to place an order. Also, the price the distribution center pays the manufacturer for each unit is $350. The inventory holding cost is $30 per unit per year. The material cost is $250 per unit. Assume that the lead time from the manufacturer to the distribution center is zero years, and that the initial inventory at the distribution center is zero units. Calculate the economic order quantity and the total annual cost.
2. Calculate the total annual cost change if the order quantity had to be decreased to 250 units per order.
The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.
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