Compute the total annual cost using your order size

Assignment Help Operation Management

Reference no: EM131475425

A large law firm uses an average of 40 boxes of copier paper a day. The firm operates 260 days a year. Storage and handling costs for the paper are $30 a year per box, and it costs approximately $60 to order and receive a shipment of paper.

Re-solve the previous problem, the first two parts (What order size would minimize the sum of annual ordering and carrying costs? Compute the total annual cost using your order size), under a $10 fixed cost of ordering (S). Repeat for S = 20, 30, 40, . . . , 100.

Explain in a short paragraph or two, what happens to the optimal order quantity, the time between orders, and the average inventory as S decreases.

Reference no: EM131475425

Questions Cloud

In the context of information security management : In the context of information security management, what aspects of CareGroup’s IT need to be improved in order to avoid serious future problems?

Which of the goals of a transcendent education involves : Which of the goals of a transcendent education involves viewing success not merely as personal gain, but as a common victory?

Lower control limits for the appropriate control chart : What are the 99.7% upper and lower control limits for the appropriate control chart? If a bicycle had 7 defects, what action would be taken?

Continuous process in the product development cycle : Solving customers' problems is a continuous process in the product development cycle.

Compute the total annual cost using your order size : What order size would minimize the sum of annual ordering and carrying costs? Compute the total annual cost using your order size

Illegal for employers to forbid employee discussions of pay : Although it is illegal for employers to forbid employee discussions of pay, keeping pay secret is the norm in many U.S. organizations.

Trusting relationships between management and employees : How might social media be used to develop more trusting relationships between management and employees? Between a company and its customers?

Difference managed care insurance plans : Participating provider note There are a lot of hoops to jump through for all of the difference managed care (and traditional indemnity) insurance plans.

What is mozillas crowdsourcing model : What is Mozilla’s “crowdsourcing” model? Has Mozilla’s unique approach to innovation paid off?

User Account

All Pages