Economic order quantity and total cost

Assignment Help Other Subject

Reference no: EM13292100

Rock-n-Sake Sushi is sushi restaurant in Baton Rouge, LA. Demand for their most popular role, the LSU role, is 28,300 roles per year. They pay $4.25 for each role, with carrying costs of 65 percent. It costs $2 to place an order. Assume that demand occurs at a constant rate, shortages are not allowed, and there is a 4-day lead-time. Assume 365 days a year. Please use an EOQ model to determine the

a. Economic Order Quantity?

b. What will the total cost be ?

c. How many orders will Rock-n-Sake place per year if they use the EOQ value computed above?

d. By how much would his annual inventory costs (ordering + carrying) if Rock-n-Saki used an inventory order quantity of 327, instead of the EOQ?

e. What is the reorder point with the original EQQ?

Reference no: EM13292100

Questions Cloud

Obtain the magnitude of the frictional force : A 1,576-kg car is moving down a road with a slope (grade) of 11% while speeding up at a rate of 3.6 m/s^2. What is the direction and magnitude of the frictional force

Compute the number of grams of the solid : 13.75mL of a 0.165M solution of aqueous hydrochloric acid were required to fully neutralize a sample of aqueous calcium hydroxide. After the neutralization is completed, all of the water is evaporated to reveal a white crystalline solid. Calculate..

Open a store that sells smoothies : How much money should your friend borrow? Explain your reasoning. Include your loan calculations.

What is the best estimate of the stock price per share : f the company has 30 million shares of stock outstanding, what is the best estimate of the stock's price per share?

Economic order quantity and total cost : Rock-n-Sake Sushi is sushi restaurant in Baton Rouge, LA. Demand for their most popular role, the LSU role, is 28,300 roles per year. They pay $4.25 for each role, with carrying costs of 65 percent. It costs $2 to place an order. Assume that demand o..

Determine the magnetic moment associated with this motion : In the model of the hydrogen atom created by Niels Bohr, the electron moves around the proton at a speed of 2.20 106 m/s in a circle of radius 5.30 10-11 m. determine the magnetic moment associated with this motion

Domain of negotiation : Constructive paper and for your points on hard and soft negotiations. However, in the domain of negotiation, there are two theoretical solutions may be found, which are the level of aspiration theory and tension-reduction model

A aqueous potassium iodide solution until the concentration : A chemist must dilute of M aqueous potassium iodide solution until the concentration falls to M . He'll do this by adding distilled water to the solution until it reaches a certain final volume.

How much does the heliums internal energy increase : As morning sunlight falls on a tethered helium balloon, it expands from a volume of 1.05 ×103 m3 to 1.15 ×103 m3. how much does the helium's internal energy increase

User Account

All Pages