Compute the optimal order quantity of dvd players

Assignment Help Project Management

Reference no: EM1381149

A company's total output for DVDs is 5,000 units (20 per day), and the cost per unit is $60. The total time between date order and date of receipt is 5 days. Associated with the shipment are shipment and procurement costs averaging $20 per order. Additional carrying costs (insurance, storage, handling, taxes etc) equal $6 per unit per year.

1. Compute the optimal order quantity of DVD players

2. Determine the appropriate reoder point (in units)

3. Compute cost savings that the company will realize if it implements the optimal inventory procurement decision.

4. Should the procurement costs be considered a linear function of the number of orders?

Reference no: EM1381149

Questions Cloud

What could you do to overcome this potentially confounding : What could you do to overcome this potentially confounding factor in accuarately determining information requirements?

Project management to suppress the dissemination : The general method is to encourage timely communication of news to project stakeholders. However, can you envisage conditions where it may be necessary,

What do you advise burt about all agency and contract issues : What do you advise Burt about all agency and contract issues, about possible lawsuits and whether he can recover his deposit and why? Discuss, as part of your analysis, the 3 claims above that Burt believes are valid.

Computer forensics investigation : After a computer forensics investigation, you require to meet with your section or group of fellow investigators and critique the case in an effort to improve your work.

Compute the optimal order quantity of dvd players : Compute the optimal order quantity of DVD players. Determine the appropriate reoder point (in units). Compute cost savings that the company will realize if it implements the optimal inventory procurement decision.

Coaxial cable as a transmission medium : The earliest LANs used coaxial cable as a transmission medium. Over time, unshielded twisted pair wiring emerged as a better and faster medium.

What is the average waiting time in line : What is the average waiting time in line? What is the average number of customers in the system?

Internet working equipment : Discuss and explain any of the internet working equipment that you have experience with and the advantages and disadvantages of them.

Explain what a gap analysis is including : Explain what a "gap analysis" is including how gaps are defined and measured. Be sure to address how gap analysis relates to needs, requirements, design, project scoping, evaluation and evaluation planning.

User Account

All Pages