How many orders will you make per year

Assignment Help Operation Management

Reference no: EM13231718

You buy tow hitch balls in large lots for the tow tractors you manufacture. You estimate that it costs you approximately 20% of cost to store a ball for a year.

Ordering cost is estimated to be $49 per order and your annual demand is for 5000 balls.

Your supplier offers you the following price schedule:

QUANTITY DISCOUNT (%) DISCOUNT COST

0 to 999 0 $5.00

1000 to 1999 4 $4.80

2000 or more 5 $4.75

The discount cost is for all balls in the order.

You operate 5 days per week, 52 weeks per year, minus 7 paid holidays.

A. What price per ball should you pay to minimize total cost?

B. How many balls should you order at each time?

C. How many orders will you make per year?

D. What is your total cost for balls each year?

Reference no: EM13231718

Questions Cloud

What is the utilization rate of this service system : If "Fast Eddie" observes that the on call crews are idle about 50% of the time is he safe in assuming that they are not doing their job? Why do you so state?

Compute the partial pressures of gas : Nitrogen and 20% of Oxygen, and that the pressure at sea level is 1.000 atmosphere, calculate the partial pressures of each gas and the total gas pressure in the middle of the stratosphere at 35.00km altitude, where T=240.0 K.

What are the advantages of using variables in a data type : A data type describes the format and size of a data item. However, it does not define the type of operation a data item needs to perform. Do you agree with this statement

Determine what is the optimal two-part tariff : Consider the market for a product with two types of potential users: those in proportion f have inverse demand schedule P = 5 - 0.5 Q, while the remaining 1 - f have inverse demand P = 10 - Q. Normalize the total number of consumers to 1, and let..

How many orders will you make per year : You buy tow hitch balls in large lots for the tow tractors you manufacture. You estimate that it costs you approximately 20% of cost to store a ball for a year.

Define what is the ph of the resultant acetic acid solution : Suppose we add 10.5 g or 0.100 mol of sodium acetate, NaC2H3O2 to 1 L of a 0.100 M solution of acetic acid HC2H3O2. What is the pH of the resultant solution?

Describe the phospatidylinositol in the lipidbilayer : Consider the distribution of phospatidylinositol in the lipidbilayer. Given the dependence of free energy on entropy

How to identify the gas : To identify a diatomic gas (X2), a researcher carried out the following experiement. She weighed an empty 4.2L bulb, then filled it with the gas at 1.30atm and 23.0C and weighted it again. The difference in mass was 6.3 g. Identify the gas

Technology had on rome and its empire : Discuss the impact that technology had on Rome and its empire. Why ways the system of law so vitalto connect the huge empire together?

User Account

All Pages