How many hammers should be ordered at one time

Assignment Help Operation Management

Reference no: EM131738885

You are managing a company that stocks and distributes hardware. The company employs two purchasing agents who receive combined salaries of $90,000. They process 6,000 purchase requests per year. Average inventory in storage is $600,000, and the total cost of running the warehouse is $200,000. You are told that the company purchases 5,000 hammers per year at a cost of $5.34 per hammer. a. Using the economic order quantity (EOQ) formula, how many hammers should be ordered at one time? b. If the hammer vendor stated that it would charger $5,00 per hammer if you ordered 200 or more at a time, what should you do?

Reference no: EM131738885

Questions Cloud

Compare and contrast values and attitudes : Compare and contrast values and attitudes. How do cultures differ in their attitudes toward time, work, and cultural change?

In economics what is meant by an oligopoly : What are some ways to make a distinction between an Oligopolistic Market and a Market identified as having Monopolistic Competition?

Discuss about an equipment lease contract : Lawful Purpose Hunt signs an equipment lease contract with Edwards Rental. The contract contains a clause stating: "Lessor disclaims all liability arising.

Define the uns relationship be with regional organizations : What should the UN's relationship be with regional organizations with respect to peacekeeping? Should prior authorization by the UNSC

How many hammers should be ordered at one time : You are managing a company that stocks and distributes hardware. how many hammers should be ordered at one time?

States liable for failing to prevent transborder attacks : What are the complications involved in holding states liable for failing to prevent transborder attacks

And what relation between income inequality and gdp : Why increase in income inequality level leads to a reduction of the GDP and decrease the social health status? (Canada)

Develop understanding of the system development life cycle : Design an internet of things solution for a specific company - develop your understanding of the System Development Life Cycle (Chapter 9), security

Discuss about the defense against plaintiff zenith : Assignment of Contracts Franchetti Rifle Distributors assigns a $20,000 claim against Top Gun, Inc., to the Zenith Collection Agency.

User Account

All Pages