Determine the quantity of exercise books

Assignment Help Operation Research

Reference no: EM1332599

A local university purchases exercise books to give to their students. Instead of a fixed unit cost, their supplier quotes the following discount pricing: Order quantity Unit Price 0 - 5000 £3.00 5001 - 10000 £2.96 10001 and over £2.92 An annual holding cost is estimated to be 20% of the purchase price. The university incurs a fixed order placement, transportation and receiving cost of £100 each time an order is placed, regardless of the order quantity. Annual demand for exercise books is 10000. The discount for the 10001-unit minimum order quantity looks tempting. However, realising that higher order quantities result in higher inventory holding cost, the university should prepare a through cost analysis before making a final ordering recommendation.

Determine the quantity of exercise books the university should order each time it makes an order in such a way as to minimise the total cost incurred.

Reference no: EM1332599

Questions Cloud

Goal of the supervisor or division head : What is often the goal of the supervisor or division head when it comes to allocating indirect cost and How can management deal with this issue

Name and explain the adopter categories : There are various categories of adopters among customers. Please name and explain the adopter categories.

Write a program in php and javascript : In PHP and Javascript, when the given function has verified that all of the necessary field have been filled, a cookie is added to the user's computer.

Explain important components of an affirmative action plan : You are an HR Manager for a large plastics company. One of your largest customers has just secured a major office furniture contract with the federal government - Explain the important components of an Affirmative Action Plan.

Determine the quantity of exercise books : Determine the quantity of exercise books the university should order each time it makes an order in such a way as to minimise the total cost incurred.

Explain how is the united states in the most recent quarter : Explain how is the United States doing in the most recent quarter compared to Japan, the Euro Area and Canada in terms of production and employment.

Calculating beta : Find out the company stock that has at least five years of quarterly return data (60 data points). Find out what the company Beta is by running a regression.

A positive or negative social reputation : Do you think that Walmart a company that has a positive or negative social reputation?

Explaining social networking in knowledge management : Social Networking is one of the hottest topics in knowledge management. Is it knowledge management?

User Account

All Pages