Optimal number of putters for hacker golf clubs to order

Assignment Help Operation Management

Reference no: EM132084295

Hacker Golf Clubs Problem Hacker Golf Clubs, Inc. orders the putters included in its golf club sets from an outside manufacturer. The company expects demand to be quite constant at 30 sets of golf clubs per month (each set contains one putter). Fixed order costs are $300 and the cost of carrying one putter in inventory for one year is $2.00.

a) What is the optimal number of putters for Hacker Golf Clubs to order?

b) How many times per year, on average, will Hacker Golf Clubs have to place an order for putters if they want to minimize their total controllable costs?

c) New marketing surveys suggest that demand for Hacker Golf Club sets will be increasing in the future, but the company is unsure of exactly how much demand will increase. Hacker’s supplier of putters has already stated that they can only ship batch sizes of 500 or fewer putters without increasing order costs. What is the largest annual demand for golf clubs that Hacker Golf Clubs can satisfy and still minimize their costs while keeping the order size for putters to 500 or less?

Reference no: EM132084295

Questions Cloud

Create good working relationship with supervisor : How are you going to create a good working relationship with a supervisor who is fifteen years younger than you are?

What is the p-value : Consider testing Upper H0= : H0: µ=20 against Ha: µ

Should there be any exceptions to the ruling : Can you provide an example of an individual under 18 years of age who (you think) should receive the death penalty? Why?

System proposal for effective communication : How can an analyst utilize tables and graphs in a system proposal for effective communication?

Optimal number of putters for hacker golf clubs to order : What is the optimal number of putters for Hacker Golf Clubs to order?

Define value for the mortgage department in large bank : Define value for the weld department in a truck manufacturing factory, mortgage department in a large bank.

Draw a diagram and shade in the region being described : If you can explain how to calculate the probability in more than one way for any part or parts, you will receive bonus points.

What is the resulting cycle inventory of engines at motley : What is the resulting cycle inventory of engines at Motley? How many days are there between two orders?

Firm should possess to support low-cost leadership strategy : What are three activities or capabilities a firm should possess to support a low-cost leadership strategy?

User Account

All Pages