Firm save annually in ordering and carrying costs

Assignment Help Operation Management

Reference no: EM131278355

A produce distributor uses 710 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month.

How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.)

Savings $ per year

Reference no: EM131278355

Questions Cloud

What might work and what is not applicable in sinek approach : Discuss what might work and what is not applicable in Sinek's approach. Support your positions with at least two peer-reviewed journal articles.

Determine the loss of available energy across the rotor : If the flowing fluid is water and the stagnation pressure drop across the rotor is 16 psi, determine the loss of available energy across the rotor and the hydraulic efficiency involved.

Planning process begins with an environmental scan : As mentioned last week the planning process begins with an environmental scan of the business and its relationship to vision and mission statements. Read the following and complete the activities below:

Difference between japanese and us interest rates : What factors might lead to persistent covered interest arbitrage opportunities among countries?- The wide difference between Japanese and U.S. interest rates prompted some U.S. real estate developers to borrow in yen to finance their projects. Comm..

Firm save annually in ordering and carrying costs : A produce distributor uses 710 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once..

Describe the company you chose and the industry they are in : Describe the company you chose and the industry they are in; include an overview of one of their products/services and the markets they serve. Present their current marketing strategy.

Determine the hydraulic efficiency of the turbine : If the stagnation pressure drop across the turbine is 12 psi, determine the hydraulic efficiency of the turbine.

Minimax criterion and the maximax criterion : Jose and Maria run a small surf-board shop in Rincon. They must order surf-boards for the coming season. Orders for the surf-boards must be placed in quantities of twenty (20). The cost per surf-board is $70 if they order 20, $67 if they order 40, $6..

Describe the sources of this renewable resource : State the average amount of energy this renewable source produces. For example, on average, how much energy does a single wind turbine produce in a year? Or, how much energy does a dam produce in a year? Or, how many wind turbines would be needed ..

User Account

All Pages