Minimize the sum of annual ordering and carrying costs

Assignment Help Operation Management

Reference no: EM131115716

A large law firm uses an average of 44 boxes of copier paper a day. The firm operates 264 days a year. Storage and handling costs for the paper are $27 a year per box, and it costs approximately $60 to order and receive a shipment of paper. What order size would minimize the sum of annual ordering and carrying costs? Compute the total annual cost using your order size from part a.

The office manager is currently using an order size of 198 boxes. The partners of the firm expect the office to be managed "in a cost-efficient manner." compute total cost for this current order size.

Reference no: EM131115716

Questions Cloud

Maximum weight allowed by the airline : The average weight of an airline passenger's suitcase is 45 pounds (µ=45). The standard deviation is 2 pounds (σ = 2). If 20% of the suitcases are overweight, find the maximum weight allowed by the airline.

Write farriss memo to home office to report on her purchases : Write Farris's memo to the home office to report on her purchases. Include the store's balance sheet as the final part of your memo. Prepare a T-account to compute the balance for Cash.

Unique normal distribution : When one thinks of the normal distribution, the first thing that comes to mind is the bell curve and grades. While this is one example of a normal curve that is widely recognized, it is not the only one. Try to come up with a unique normal distrib..

How many rotations will the smaller gear make : What is the angle measure, in degrees and rounded to the nearest tenth, through which the larger gear has rotated when the smaller gear has made one complete rotation?

Minimize the sum of annual ordering and carrying costs : A large law firm uses an average of 44 boxes of copier paper a day. The firm operates 264 days a year. Storage and handling costs for the paper are $27 a year per box, and it costs approximately $60 to order and receive a shipment of paper. What orde..

Calculate the cash flow budget for empire enterprises : Calculate the cash flow budget for Empire Enterprises for the 2016 year, on a quarterly basis. All revenue and expense items have been provided. Complete all necessary calculations for the cash budget

Ethics-corporate governance-corporate social responsibility : "Ethics, Corporate Governance, and Corporate Social Responsibility (CSR) " Please respond to the following:

Compute the costs per equivalent unit for april for mixing : Compute the costs per equivalent unit for April for mixing, materials, and conversion. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department in April.

The company uses the periodic inventory system : On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31.

User Account

All Pages