Identify the economic order quantity

Assignment Help Operation Management

Reference no: EM131256415

Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25 for each order, with an annual holding cost of $24.

a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100.

b) Identify the economic order quantity and consider the implications for making an error in calculating economic order quantity.

Reference no: EM131256415

Questions Cloud

Examples of fostering goodwill in the workplace : What are 2 examples of fostering goodwill in the workplace as a business manager? Is it possible for goodwill to hinder the image of a company? Which business/company ever sponsor a "less-than-savory" event? How was it managed?

Explain what the staff should expect the auditors to do : Auditors have come into a department as part of a company-wide audit prior to issuing an audit opinion for the company's financial reports. In a one- to two-page paper (not including the title and reference pages), explain what the staff should ex..

What is the relative concentration of a : The isothermal, first-order reaction of gaseous A occurs within the pores of a spherical catalyst pellet. The reactant concentration halfway between the external surface and the center of the pellet is equal to one-fourth the concentration at the ..

Develop a strategic analysis for organization : For your strategic analysis assignment, you should choose an organization that you are familiar with. You will develop a strategic analysis for this organization in order to determine whether or not adopting a new sustainability initiative is poss..

Identify the economic order quantity : Calculate the total cost for order sizes of 25, 40, 50, 60, and 100. - Identify the economic order quantity and consider the implications for making an error in calculating economic order quantity.

Discuss the key aspects of ada : From your years as a diversity consultant, you are familiar with the ADA. Discuss the key aspects of ADA that you will share with all employees so they understand the importance of the topic. Include a discussion on how ADA assists organizations i..

How many orders per year are needed with the optimal policy : To minimize cost, how many units should be ordered each time an order is placed? - How many orders per year are needed with the optimal policy?

Real causes of a problem : In the development of a problem statement, what are some components you consider important as you identify the real causes of a problem? How would you describe a problem in a way that is clear to the management team that will be evaluating the OIP?

What will be the maximum inventory level : What is the economic production quantity? - How many production runs per year will be made? - What will be the maximum inventory level?

User Account

All Pages