Carrying costs by using the eoq

Assignment Help Operation Management
Reference no: EM132708987

A produce distributor uses 720 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month.

How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

Reference no: EM132708987

Questions Cloud

Commercialize the digital camera : What management preferences to Kodak executives likely have when they decided not to commercialize the digital camera.
Characteristic of skills leadership theory : What is the definition and characteristic of Skills leadership theory and approaches to leadership?
Identify it management deficiencies : How would you use this model within your own IT Management Plan? Provide resouces.
Stakeholder engagement in classroom : Discuss ways that you have seen people manage stakeholder engagement in your classroom or work environments. Which approaches seem to work the best?
Carrying costs by using the eoq : How much could the firm save annually in ordering and carrying costs by using the EOQ?
Advise on matters of diversity : What types of information can be collected to advise on matters of diversity? Document any five.
Clearly explains the three costs with safety management : Explains the inspection, investigation, and evaluation process in detail. Explains how an organization can adopt and enforce employee health and wellness.
Describe at least two alternative strategies : Locate the most recent Strategic plan for Marriott International. List the objectives for the major goals that the company is pursuing. List at least 3 objectiv
What is the optimal order size : A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.80 per stone for quantities of 600 stones or more

Reviews

Write a Review

Operation Management Questions & Answers

  How would you assess kim as a leader

How would you assess Kim as a leader? What actions would you take (internally or externally) if you were the leader of this task force?

  Proper response to problem on strategic protection report

What is the proper response to reports indicating that customer satisfaction scores are below the minimum goal for the second consecutive quarter? What is the proper response to a problem on a strategic protection report? In these two situations, wha..

  Create a work breakdown structure for a year-long project

Dan has supplied him with a list of family and friends he'd like to invite, and Mitch figures he can use the list to assign clear party-planning roles.

  Describe the basic elements of the project life cycle

Describe the basic elements of the project life cycle. Why is an understanding of the project life cycle relevant for understanding project management?

  How much of that can be considered safety stock

what is the minimum number of bars that must be on hand at reorder time and how much of that can be considered safety stock?

  Prepare work breakdown structure explaining task

Prepare work breakdown structure explaining task, durations, and predecessor task.

  What is the probability that this person has heart disease

Suppose the first EKG test is positive. In order to make sure, a second EKG test is given to the person. What is the probability that this person has heart disease if the second EKG test is also positive?

  Describe what effective leadership means to you

Describe what effective leadership means to you. Who determines a leaders effectiveness? Provide details and examples to support your thoughts.

  Ethical issues would be common in your workplace

As a manager or supervisor, what types of ethical issues would be common in your workplace?

  Differences between unstructured and structured interviews

So how should you go about increasing the effectiveness of your interviews? What are the major differences between unstructured and structured interviews?

  Emotional quotient for effective communication

What is the importance of EQ (emotional quotient) for effective communication in the workplace. Provide a list of recommendations that a audience will find compelling, insightful, and easy to remember?

  Information systems and the data

For this week's discussion, select one of those aspects (listed below) and discuss how companies can use information systems and the data within them to address

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