Estimate the optimal order quantity

Assignment Help Operation Management

Reference no: EM13101673

A mail-order house uses 16,000 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.

Number of Boxes	Price per Box
1,000 to 1,999	$1.25
2,000 to 4,999	1.20
5,000 to 9,999	1.15
10,000 or more	1.10

a.	Determine the optimal order quantity. (Round your answer to the nearest whole number.)

Optimal order quantity

boxes

b.	Determine the number of orders per year. (Round your answer to 2 decimal places.)

Number of order

per year

Reference no: EM13101673

Questions Cloud

What is a sequence as well as a series : What is a sequence as well as a series? What is two real-life methods a sequence or a series can relate to personal life, business or science? Explain how the instances are used

Define how do the forces acting between the truck and car : A large truck collides head-on with a small car. The car is severely damaged as a result of the collision. According to Newton's third law, how do the forces acting between the truck and car compare during the collision?

Compute the volume of sodium hydroxide : compute the volume of sodium hydroxide that is required to make a buffer with a pH = 5.77.? given that pKa = 4.77. and initial volume of the acid solution = 1.00 Litre.

Identify the advantages and disadvantages of developing : Identify the advantages and disadvantages of developing and utilizing the cohort study methodology over the case-control study. Provide specific examples to support your response.

Estimate the optimal order quantity : A mail-order house uses 16,000 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.

Discrimination against americans of mexican ancestry : Given that Americans of Mexican ancestry constitute 79.1 % of the populations of those eligible for jury duty and given that Partida was convicted by a jury of 12 people with only 58% (7 jurors) of them that were Americans of Mexican ancestry, can..

Example of binomial-hypergeometric : Give an example for each of the following distributions, binomial, hypergeometric, and Poisson. Explain the differences and different characteristics.

What is two real-life means a sequence can relate : What is two real-life means a sequence or a series can relate to personal life, business or science? Describe how the examples are used.

How many electrons need to leave each object : Two spherical objects with a mass of 6.86 kg each are placed at a distance of 3.06 m apart. How many electrons need to leave each object so that the net force between them becomes zero?

User Account

All Pages