How many parts should they order each time they place order

Assignment Help Operation Management

Reference no: EM132161227

SD electronics purchase a hard drive from China Fabrication for $40. This part is used in the manufacture of nas storage. SD electronics uses an average of 4000 of these hard drives every month and the demand is evenly spaced throught the year. However, ordering is expensive and there is a fixed cost of $1000 regardless of the quantity they ordered. SD electronics cost of capital is 20%/year

a. how many parts should they order each time they place an order?

b. To satisfy their annual demand, how many times a year should they place an order?

SD electronics has the test station as one of its processes. The average inventory in this process is 1000 units . The throughput each month is 4000 units . What is the average fllow time through the process? Use 4 weeks a month for computational purposes?

Reference no: EM132161227

Questions Cloud

Analyze management strategy pertaining to the contract : Analyze the management strategy pertaining to the contract they ratified with their pilots?

When management strategy appears to be working : How can we, as accounting professionals, assess when a management strategy appears to be working and when it is failing?

Concept of integrated marketing communications : What pursues or justifies the concept of integrated marketing communications?

Identify and discuss some possible challenges : Critically analyze and discuss any researched (web or textbook) training process model you may consider for use in developing employees.

How many parts should they order each time they place order : How many parts should they order each time they place an order? To satisfy their annual demand, how many times a year should they place an order?

You commonly associate with the term marketing : Choose 5-7 words that you commonly associate with the term “marketing.”

Conventional channel to vertical managed marketing system : How could a distribution channel evolve from a conventional channel to a vertical managed marketing system?

Mission statements rarely provide useful marketing value : “Mission statements are critical to a successful marketing organization” versus “Mission statements rarely provide useful marketing value.”

For use in fully developed data warehouse : What were some of the challenges in a creating a query (even small ones)? For use in a fully developed data warehouse,

User Account

All Pages