Determine the ordering cost

Assignment Help Operation Management

Reference no: EM13108541

A food processor uses approximately, 27,000 glass jars a month for its fruit juice product Because of storage limitations, a lot size of 4.000 jars has been used. Monthly holding cost is 18 cents per jar and reordering cost is $60 per order The company operates an average of 20 days month. What penalty is the company incurring by its prevent order size? The manager would prefer ordering 10 x each month but would have to justify any change at order size. One possibility is to simplify order processing to reduce the ordering cost. What ordering cost would enable the manager to justify ordering every other day? Suppose that after investigating ordering cost, the manager is able to reduce it to $50. How else could the manager justify using an order size that would be consistent with ordering every other day?

Reference no: EM13108541

Questions Cloud

What is the stanine score for someone who obtains raw score : You have developed a test of musical ability, and would like to report the scores as Stanines, with a mean of 5 and a standard deviation of 2. Raw scores on your test have a mean of 30 and a standard deviation of 5. What is the Stanine score for s..

Describe at least one neurotransmitter : Which parts of the brain are believed to be involved in this disorder, and how do these areas of the brain influence the development and behavior of the individual and describe at least one method which has been used to study this disorder (EEG, f..

Consider how the chi-square test of association : Consider how the chi-square test of association is a nonpapametric procedure that requires different assumptions. Address a real-world situation or problem that would best be analyzed using this technique.

Determine correlation coefficient : Compute the 95% confidence and prediction intervals for values of y for X = 40. Determine correlation coefficient, Interpret.

Determine the ordering cost : A food processor uses approximately, 27,000 glass jars a month for its fruit juice product Because of storage limitations, a lot size of 4.000 jars has been used.

Which of the following approaches to psychotherapy : The criticism of not addressing the causes of psychological disorders is most commonly associated with which of the following approaches to psychotherapy?

What are some memory strategies : How does cognitive psychology help you to understand memory? How can the accuracy of memory be affected by cognitive and schematic processes? What are some memory strategies that could help students dealing with memory problems or inaccuracies?

Discuss one type of schematic processing : provide an illustration of at least two cognitive processes that can lead to bias or inaccuracy in your own memory. also, discuss one type of schematic processing, and how this schema led to a distortion of events .

Estimate additional annual cost : Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order.

User Account

All Pages