Optimal order quantity and expected number of orders

Assignment Help Operation Management

Reference no: EM131749818

Katadyn purchases 8,000 filters each year as components of their portable hiking water filters. The unit cost of each filter is $10, and the cost of carrying one filter in inventory for a year is $3. Ordering cost is $30 per order.

What are (a) the optimal order quantity, (b) the expected number of orders placed each year, and (c) the expected time between orders? Assume that Katadyn operates on a 200-day working year.

Reference no: EM131749818

Questions Cloud

Write a paper on given topic - The CSI effect : The topic for this paper is: The CSI effect. This paper needs to be in Proper APA formant according to the 6th edition of the APA manual

Discuss the limitations of discounted cash-flow criteria : Discuss some of the limitations of discounted cash-flow criteria. What assumptions do we make when we advocate that investment decisions should be based solely.

An example of a non-functional requirement : An example of a non-functional requirement is

What are the economic interpretations of net present value : As the general manager of a firm, you are presented with an investment proposal from one of your divisions.

Optimal order quantity and expected number of orders : What are (a) the optimal order quantity, (b) the expected number of orders placed each year, and (c) the expected time between orders?

Discuss about basic research and development : It has been said that many investment projects, even in profit motivated industries, cannot be justified on a discounted cashflow basis.

Differences between conflict and human interactions : Compare and contrast the differences between conflict and differences in human interactions and how employers can benefit from the two.

Sustained serious injury : In May, Rebecca’s daughter, Isabella, sustained a serious injury that made it impossible for her to continue living alone.

Prepare a statement of owner equity : Prepare a statement of owner's equity. (List items that increase owner's equity first.) Prepare an unclassified balance sheet

User Account

All Pages