Minimize the total cost of inventory

Assignment Help Business Management
Reference no: EM131250236

Atherton Foods is seeking to better manage its inventories. The first item they want to examine has the following characteristics sells for $1.28/unit. It costs them 25 percent of the average value of the inventory of this item to hold it; they use 72,000 of them during a typical year. Cost studies have shown them that it costs $20.00 to place an order for more it, and once that order is placed it takes 5 days to receive the item. Assume a year has 360 days.

1. If they wish to minimize the total cost of their inventory for this item, how many should they order each time they place an order?

2. How many units should be left when they place their next order?

3. Assuming they buy the number of items you determined in qustion 1 above, how many orders will they place each year?

Reference no: EM131250236

Questions Cloud

Identify competitors in chinese market : Identifying competitors in Chinese Market. Finding a Surrogate to help market Double Sheet Detection Product in China. Use a focus on the automotive and appliance industries in China.
Find the mass in both a and b, and also the final t and p : The piston is now unlocked so that it is free to move, and it conducts heat so that the air comes to a uniform temperature TA = TB. Find the mass in both A and B, and also the final T and P.
Patrol and investigation are the two primary components : From the e-Activity, of the various juvenile justice prevention and intervention programs presented on the Website, select the program that you believe will have the best long-term impact on the goal of juvenile crime prevention. Justify your resp..
Define the work and heat transfer for the process : A 20-lb mass of water in a piston/cylinder with constant pressure is at 1100 F and a volume of 22.6 ft3. It is now cooled to 100 F. Show the P-v diagram and find the work and heat transfer for the process.
Minimize the total cost of inventory : 1. If they wish to minimize the total cost of their inventory for this item, how many should they order each time they place an order? 2. How many units should be left when they place their next order?
What technical architecture supports these transactions : What technical architecture supports these transactions? What are the benefits and drawbacks of the B2B arrangement that this company engages?
Expatriate management at astrazeneca : The week six assignment is to complete and discuss the case study: "Expatriate Management at AstraZeneca" (page 325)
Explain the inferences being made : Explain the inferences being made, and do not simply give a book report of the premises and conclusions.
Total cost of their inventory for item : 1. If they wish to minimize the total cost of their inventory for this item, how many should they order each time they place an order? 2. How many units should be left when they place their next order? 3. Assuming they buy the number of items you d..

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd