Determine the annual ordering cost

Assignment Help Operation Management
Reference no: EM133448707

Matt's Manufacturing and Customs stocks a special switch connector in his central warehouse for the sake of supplying the field service crew when they need them for customer breakdowns. The yearly demand for these connectors is 15000. Matt estimates his holding cost for this item to be $25 per unit. The cost to place and process an order for more of these connectors is $75. Matt's company operates 300 days per year, and the lead time promised (and observed) from the supplier of the switch connector is 2 days.

1. Determine the economic order quantity.

2. Determine the annual holding cost.

3. Determine the annual ordering cost.

4. What would be the most reasonable reorder point?

Reference no: EM133448707

Questions Cloud

Analysis of operations management optimization : An analysis of operations management optimization within a workplace: a case study of bongani rainmaker Logistics .
Evaluate organization productivity : Describe metrics you will evaluate an organization's productivity.
Controlling stitch fix corporate performance : What measures of efficiency and effectiveness are important for controlling Stitch Fix's corporate performance?
Bureaucratic organizational culture : Outline the four 4 types: adaptability, achievement, clan, and bureaucratic organizational culture.
Determine the annual ordering cost : Determine the economic order quantity. Determine the annual holding cost. Determine the annual ordering cost.
How can using underscore and explore strategy : How can using the "underscore and explore" strategy increase a sense of urgency to the employees about the change.
Think of patient population : Can you think of a patient population (a culture, ethnicity, religious group, sexual orientation) with which you do not have much familiarity?
Evidence based decision making : Evidence based decision making (EBDM) is defined as the act of using the best and most accurate examples of scientific research
Fine appears for glaxosmithkline : Are fines enough? As dramatic as the $3 billion fine appears for GlaxoSmithKline, there are some who believe it was not enough.

Reviews

Write a Review

Operation Management Questions & Answers

  What weekly holding cost rate does the lot size imply

What weekly holding cost rate does the lot size imply, assuming the lot size 2000 is optimal?

  How can chairperson encourage active participation

How can a chairperson encourage active participation from attendees at meetings?

  Traditional purchasing and use of e-auctions

Identify differences between traditional purchasing and use of e-auctions. How can Brandt use these differences to make his selection?

  Controversial component of personnel selection process

Why are drug tests a controversial component of the personnel selection process?

  Benefits and motivation are interrelated

The overall theme of this discussion is about how pay, benefits and motivation are interrelated.

  Find a nash equilibrium of this game

Firm 1 is considering buying Firm 2. It does not know Firm 2 ís value, Find a Nash equilibrium of this game.

  When reviewing determinants of consumer demand

When reviewing determinants of consumer demand and, specifically, factors that will shift consumer demand. Companies must be aware of this for their products and respond according. Companies who have growing sales can be assumed to have a positive sh..

  What strategies should an epidemiologist use to ensure

Described these contaminants by writing a mini synopsis of each, and address how an epidemiologist played a significant part with increasing the safety of the community.

  Uncomfortable conversation good idea in workplace

Is ghosting a potential employer or an unsuccessful job candidate just to avoid an uncomfortable conversation a good idea in a workplace?

  The user view of the forecast and the forecast accuracy

How does how a forecast is presented affect the user's view of the forecast and the forecast's accuracy?

  Using a simple random sampling procedure

A consultant had administered a questionnaire to some 285 employees using a simple random sampling procedure. As she looked at the responses, she suspected that two questions might not have been clear to the respondents. She would like to know if her..

  Provided on interviewing and utilizing external resources

Feedback and suggestions will be provided on interviewing and utilizing external resources.

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