Meet the annual demand at the lowest cost

Assignment Help Operation Management

Reference no: EM131027288

CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break and other data for the problem: Price of copper $0.80 per pound up to 2,499 pounds $0.79 per pound for orders between 2,500 and 4,999 pounds $0.78 per pound for orders of 5,000 pounds or more Annual demand 54,000 pounds per year Holding cost 20 percent per unit per year of the price of the copper Ordering cost $30 Which quantity should be ordered? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM131027288

Questions Cloud

Communities of practice are generally organic in nature : Communities of practice are generally organic in nature and can’t be forced into existence (Sense, 2015). In order to better understand the problems in creating a successful community of practice it must first be defined. A community of practice shou..

What is stakeholder theory : What is stakeholder theory? Explain.

When should the buyer do most of the talking : It is commonly noted that people who work in sales naturally like to talk a lot. During the sales meeting, when should sales people do most of the talking, and when should the buyer do most of the talking?

Where will changes in the traditional business paradigm : Where will changes in the traditional business paradigm have to occur in order to accommodate sustainability in the coming decades?

Meet the annual demand at the lowest cost : CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered.

Used for handling linear programming problems : Conduct Internet research of the types of customer applications that are used for handling linear programming problems. Search the Web sites of software vendors for an example that interests you, then describe this customer application in this discus..

Discuss role of sensitivity analysis in linear programming : Discuss the role of sensitivity analysis in linear programming (LP). Describe an example of an LP problem in which sensitivity analysis would be important and explain why.

What is management of teams : “What is management of teams and what is important to consider when creating and leading a team for success?”

Example of an ethical situation demonstrating : What are the primary ethical principles and how do they pertain to healthcare? Provide a brief description of each principle and one example of an ethical situation demonstrating that principle that healthcare professionals may encounter on a daily b..

User Account

All Pages