Solution-Find the vendor and the quantity with the minimum

Find the vendor and the quantity with the minimum

Assignment Help Management Theories

Reference no: EM13905134

A company has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 2,400 valves; order cost is $10 per order; and annual inventory holding cost is $3.33 per unit.

a) Which vendor should be selected and what order quantity is best if the company wants to minimize total cost.

Vendor A Vendor B
Quantity Price ($) Quantity Price ($)
1-49 35 1-74 34.75
50-74 34.75 75-149 34
75-149 33.44 150-299 32.8
150-299 32.35 300-499 31.6
300-499 31.15 500 + 30.5
500 + 30.75
Vendor C Vendor D
Quantity Price ($) Quantity Price ($)
1-99 34.5 1-199 34.25
100-199 33.75 200-399 33
200-399 32.5 400 + 31
400 + 31.1

b) If the holding cost is 50% of the purchase price. Find the vendor and the quantity with the minimum total cost.

Reference no: EM13905134

Questions Cloud

The companys depreciation and amortization expense : Trevi Corporation recently reported an EBITDA of $32,400 and $9,700 of net income. The company has $6,700 interest expense, and the corporate tax rate is 35 percent. What was the company’s depreciation and amortization expense?

How many levels would the independent variable have : A health psychologist decides to study the effects of class in school (freshman, sophomore, junior, senior) on the number of hours spent studying. how many levels would the independent variable have

Determine volumetric flow rate and the cross sectional area : a small glass plate of 250cm squared is sliding on a horizontal flat surface covered by water layer of 3mm thick. find the force required to move the plate at a constant velocity of 0.1m/s. the viscosity of the water is 10 to the minus 3 Pas.

Lifo. compute the gross margin for each method : Hemming Co. reported the following current year purchases and sales for its only product.

Find the vendor and the quantity with the minimum : If the holding cost is 50% of the purchase price. Find the vendor and the quantity with the minimum total cost.

Find the probability that the employee received training : If you choose an employee at random, then find the probability that the employee received training and became a productive salesperson and became a productive salesperson

Manufacturing overhead and pre-determined overhead rate : Poole Company applies manufacturing overhead (MOH) using a pre-determined overhead rate (POHR) based on machine hours (MHs) with the following information for the period: The activity for the period was significantly less than Poole's capacity of 275..

What is the density of the green liquid : If h1 = 0.43 cm and h2 = 4.14 cm and the blue liquid in the U-tube is water (1000 kg/m3), what is the density of the green liquid?

Reasons for the successes and failure : FDI flows are increasing at a considerable size. Choose any two sector of your choice and collect the past five years data, tabulate the five years FDI inflows in India. Give the reasons for the successes and failure in that sector.

User Account

All Pages

Find the vendor and the quantity with the minimum

Reference no: EM13905134

Reference no: EM13905134

Questions Cloud

Reviews

Write a Review

Management Theories Questions & Answers

How would a faculty union affect the students

Critical analysis

The manchester united soccer tournament project team

A line manager perspective

Unliquidated damages in an original pleading

What is insider trading and how can it harm investors

Managerial communication

What evidence would the union say was violated?

Review of the significant principles of management

Discussion home or mobile office rely 2

Using a simplistic approach to inventory issues

Being a manager describe the general elements

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT