How many number 6 screws should lila order

Assignment Help Operation Management

Reference no: EM131253362

Lila Battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother's hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of the forms used in placing the order, and so on.

Furthermore, she estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent. Assume that the demand is constant throughout the year.

(a) How many number 6 screws should Lila order at a time if she wishes to minimize total inventory cost?

(b) How many orders per year would be placed? What would the annual ordering cost be?

Reference no: EM131253362

Questions Cloud

Considers working at the mini golf course just as good : Jeff runs a mini golf course in Valdosta, Georgia USA. He rents the course and equipment and he himself is the only labor. His monthly earnings after rent is $800, and he considers working at the mini golf course just as good as his alternative of wo..

Preliminary presentation of business plan : You have been asked to give a preliminary presentation of your business plan to a group of investors. This initial presentation is to review your concept and deliver the strategic plan for its success. As an introduction, it does not necessarily i..

Key financial and economic principles : The key financial and economic principles applied to sports. Leagues use tools such as revenue sharing and salary caps to control finances within the league. Are they good ideas or bad ideas? What are some of the pros and cons? What is better-reve..

Web services sounds way too complex to be viable : Web services sounds way too complex to be viable? How are little chunks of code from many organizations really going to work together and provide a reliable and secure computing environment?

How many number 6 screws should lila order : How many number 6 screws should Lila order at a time if she wishes to minimize total inventory cost? - How many orders per year would be placed? What would the annual ordering cost be?

Imperative aspects of public organization : Human Capital and Public Finances are two imperative aspects of any public organization. In what ways are human capital and finances competing values? How can bureaucrats navigate the competing needs?

Examine the table showing the warning letters search result : Examine the table showing the "Warning Letters Search Results". What are the different centers (3) in the FDA that that issue GLP warning letters?

What is the null hypothesis for your question : What is your research question? - What is the null hypothesis for your question? - What research design would align with this question?

The transition from government-determined to market : The transition from government-determined to market-determined prices in Russia caused: A. inflation B. deflation C. price level stability. D. a surge of exports from Russia. Which of the following statements best characterizes the economic changes o..

User Account

All Pages