Find the optimal order size

Assignment Help Operation Management

Reference no: EM13226617

Yearly demand of high performance tires at a retail store is 10,000 per year. The ordering cost is $400, the carrying cost is $100, and the lead time is 9 days. The retail store only closes 5 days in the year.

Find the total annually inventory cost.

What is the reorder point?)

The current price of each tire is $150. The supplier offered a discount of $10 per tire if the retail store orders more than 300. What is the right decision? (justify your answer)

The company wants to ensure a 95% (z=1.645) service level.

What would be the cost of the safety inventory? (Assume ?d = 4)

Reference no: EM13226617

Questions Cloud

Explain what is the partial pressure of co : A mixture of .148 moles of C is reacted with .117 moles of O2 in a sealed 10L container at 500K producing CO and CO2. The total pressure is .640 atm. What is the partial pressure of CO?

Explain what is the concentration of ammonia in a solution : What is the concentration of ammonia in a solution if 21.80 mL of a 0.1160 M solution of HCl are needed to titrate a 100.0 mL sample of the solution?

Find an xc value to put in parallel with the motor : A P=900W electric motor with pf=0.82 lagging is connected to a 240 Vrms 60 hertz source. a) Draw an equivalent circuit showing impedance and phasor values for Vs, R and X. b) Find an Xc value to put in parallel with the motor which corrects the pf to..

Explain what is the molar mass of the gas : An experiment shows that a 250 mL gas sample has a mass of 0.430 g at a pressure of 728 mmHg and a temperature of 26 C. What is the molar mass of the gas?

Find the optimal order size : Yearly demand of high performance tires at a retail store is 10,000 per year. The ordering cost is $400, the carrying cost is $100, and the lead time is 9 days. The retail store only closes 5 days in the year.

Explain how many moles of nitrogen are in an empty : How many moles of nitrogen are in an "empty" two-liter cola bottle at atmospheric pressure and room temperature (\rm 25^{\circ}C)? Assume ideal behavior.

What is the total cost without the discount : Happy Pet is now considering a new supplier of Everlast Leaders. Each lead would cost only $6.65; but in order to get this discount, Happy Pet would have to buy shipments of 3,000 at a time. Should Happy Pet use the new supplier and take this disc..

State the maximum body accumulation of methylmercury : What is the maximum body accumulation of methylmercury at a constant ingestion rate of 4 mg of mercury per day?

Write a linear program that calculates the number of copies : Write a linear program that calculates the number of copies that the company should ship from each warehouse to San Francisco and Sacramento to fill the order at the least cost.

User Account

All Pages