Calculate the economic order quantity and the total costs

Assignment Help Operation Management
Reference no: EM131938265

Read below problem and try to solve it based on what you have learned so far;

a) As the purchasing manager of a large school district, one of your tasks is to procure computer resources for classrooms. District policy is to replace class room desktop computers every three years. This year's computer demand is 2,400 units.

One of your suppliers offers the desktop computer units for sales at $1,200 per unit for up to 199 units and $1,100 per unit for orders 200 units or more.

The order cost (including ordering and transportation) is $1,000 per order and inventory holding cost is 30% per unit per year. Calculate the economic order quantity and the total costs for both options. Which option is acceptable?

b) Due to occasional theft and accidents, the demand for computers is normally distributed with the mean of 200 units per month and standard deviation of 10 units per month. Lead time interval is 1 month. Determine the reorder point if you desire a service level of 0.05.

Reference no: EM131938265

Questions Cloud

What is the momentum of the ball : What is the momentum of the ball when it is at the maximum height?
Explore the different forms of arguments and purpose : The readings this week explore the different forms of arguments and the purpose of each type.
How much time does the ball take to reach the ground : A 0.125 kg ball is projected with a velocity of 20m/s at an angle of 20° with respect to the horizontal. How much time does the ball take to reach the ground?
Which metric of unemployment peaked first second third last : Which metric of unemployment peaked first, second, third, last? Based on this, which would serve optimally as a leading indicator of a recovery?
Calculate the economic order quantity and the total costs : As the purchasing manager of a large school district, one of your tasks is to procure computer resources for classrooms
What is the most just type of society : What is the most just type of society? What would it be like? Provide details of the institutions it would include, and how you would ensure fairness.
What freedom of speech rights do employees have : A former BIGCORP, INC. employee says her supervisor fired her last week for refusing to remove an antiwar button from her shirt in the workplace.
Develop a chronological time line detailing the events : Select five major events/milestones in the development of clinical psychology. Develop a chronological time line detailing the events/milestones you chose.
How many people were separated in manufacturing : How many people were separated in manufacturing? What was the change in the total separation rate (%) from Jan 17-Jan18; interpret.

Reviews

Write a Review

Operation Management Questions & Answers

  Virtual supply chains locate two articles

LP8 Assignment: Virtual Supply Chains Locate two articles on the topic of virtual supply chains. Synthesize each article into a one-page summary using your own words.

  Involved in importing and exporting

Select a company in india of origin that is involved in importing and/or exporting, run a thorough research on the company’s business operation. Your goal is to understand how government involvement in international trade has helped or harmed the com..

  Developed a personal quality checklist

Pretend that you have developed a "personal quality checklist" on which you tally non conformances in your personal life (such as being late for work or school, not completing homework on time, not getting enough exercise, and so on). Briefly describ..

  Illustrate the difference between mission and vision

1. what is the difference between mission and vision statements? what factors must be considered to produce an

  What is the most cost-effective way to reach this segment

Essentially every company, from the smallest startup to the largest multinational corporation, is revenue dependent. Revenue is the lifeblood of business. Without it, no enterprise can survive. When developing a marketing plan, there are a plethora o..

  Wild makes playing cards in several different styles

Jokers R Wild makes playing cards in several different styles, but a “standard” deck of cards is used for planning purposes.

  What is the number of containers currently in use

What is the number of containers currently in use? If the number of parts a container holds is increased to 24 parts, how many containers are needed?

  What was luxury bakings design capacity utilization

Luxury Baking can make 1,200 chocolate chip cookies per day under normal conditions and 1,500 with overtime labor. In the month of February, the average production was 1,300 cookies per day. What was Luxury Baking's design capacity utilization in Feb..

  Norms be used to reduce deviant workplace behavior

Workplace deviance is costly to both organizations and employees. Victims of workplace deviance suffer from stress-related conditions, decreased productivity, and low morale, and are more likely to leave the organization. How can norms be used to red..

  What are the most effective leadership styles

What are the most effective leadership styles? Why are they effective? In your opinion, what are the least effective leadership styles? Explain.

  Contrast individual-organizational and group level diagnosis

Compare and contrast individual, organizational and group level diagnosis. How do design components differ? Explain and/or provide an example.

  Discuss how these tools are applied in business analysis

Compare and contrast two software tools, and discuss how these tools are applied in business analysis. What could be done to improve these tools, in your opinion?

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