Find economic order quantity and total annual inventory cost

Assignment Help Operation Management

Reference no: EM13926860

Southeast Publishing Company employs a high-speed printing press in its operations. A typical production run of 5,000 to 50,000 copies of a textbook can be pro- duced in less than one day. The manager of the business textbook division is attempting to determine the optimal number of copies of the seventh editions of its financial management and managerial economics textbooks to produce. Expected annual demand for the two books are 50,000 and 22,500 copies, respectively. Fur- thermore, the manager does not want to produce more than a 3-year supply of either book because these textbooks are normally revised after the third year. Setup costs of getting the printing press (and bindery) ready for a production run of a given textbook are $2,500 and $2,000, respectively, for the two books. Annual carrying costs are $0.80 per copy (16 percent annual carrying charge times the $5.00 production cost per copy). For each textbook, determine the following:

a. The economic order quantity

b. The total annual inventory costs

c. The optimal ordering frequency

Reference no: EM13926860

Questions Cloud

Write a journal entry that reviews the process states : Write a journal entry that reviews the process states for your preferred operating system and prepares you for the process management requirements of your final project. First, research and then describe the scheduling algorithm used by your operatin..

Digital terrorism and criminology of computer crime : List at least three (3) major categories of cyber terrorism and / or information warfare. Among the chosen categories, determine the one (1) that should be the top priority for the federal government to address. Provide a rationale to support your re..

Standard deviation of all possible sample proportions : A sample size of 1000 is large enough to conclude that the sampling distribution of p is a normal distribution, when the estimate of the population proportion is .996

Please expalin how towr cranes obtain their stability. : Please expalin how towr cranes obtain their stability.

Find economic order quantity and total annual inventory cost : Southeast Publishing Company employs a high-speed printing press in its operations. Determine the economic order quantity, The total annual inventory costs and The optimal ordering frequency.

Balanced stability even though it increases in height : How does a climbing tower crane maintain balanced stability even though it increases in height?

Analyze your strengths and weaknesses : A big part of being successful in life is being able to assume and play the role of reflective practitioner. That is, being able to analyze your strengths and weaknesses and use the results of this analysis for future growth.

A wheel has a number of factors and forces : A wheel has a number of factors and forces that can be seen during movement.What happens if you used the wrong bike tire for the environment (a racing bike tire on a mountain trail, a mountain bike tire on the street)?

Definition of mutually exclusive events : If events A and B are independent and A is not an impossible event, then P(A/B) is not equal to zero. TRUE In fact P(A/B) equals P(A) if A and B are independent, which is not zero unless A is an impossible event.

User Account

All Pages