Optimal order quantity and the associated annual total cost

Assignment Help Operation Management

Reference no: EM13844792

Suppose that your company supplies toothpaste to Wal-Mart, and they are your only customer. Wal-Mart orders its EOQ of 1,000 tubes each time they order. The annual demand for these tubes is 40,000 units. Your setup cost is $100 per order, and your annual holding cost is $0.50 per unit. What is your optimal order quantity and the associated annual total cost?

Reference no: EM13844792

Questions Cloud

Consider continuous review inventory system : Consider a continuous review inventory system. Demand is normally distributed with an average of 13,600 per month and a monthly standard deviation of 225 units. Lead time is one week (assume 4 weeks per month). If the firm desires a 97% CSL, how many..

What cues can educators take from these tragic cases : What does "Genie's" final outcome tell us about language (and emotional) development? What cues can educators take from these tragic cases

The associated annual total cost : Suppose that your company supplies toothpaste to Wal-Mart, and they are your only customer. Wal-Mart orders its EOQ of 1,000 tubes each time they order. The annual demand for these tubes is 40,000 units. If shortages are allowed, how many units shoul..

Expected variable costs and expected costs from overbooking : expected variable costs and expected costs from overbooking

Optimal order quantity and the associated annual total cost : Suppose that your company supplies toothpaste to Wal-Mart, and they are your only customer. Wal-Mart orders its EOQ of 1,000 tubes each time they order. The annual demand for these tubes is 40,000 units. Your setup cost is $100 per order, and your an..

By planning cash needs ahead of time : By planning cash needs ahead of time, an entrepreneur is able to:

Entering a foreign market : Should the pricing decisions in Argentina be delegated to the local managers? Why or why not? Should the advertising message that has been effective in the U.S. be used in Argentina? Why or why not? What are some of the considerations that might be t..

Describe errors in the given paragraph : The following paragraph has been formatted incorrectly according to APA formatting rules. Identify and describe 4 errors in the following paragraph: Smith, Jones, & Terry 2008 investigated the effects of death-qualification on jurors' confidence

The first step to building a workable credit policy : The first step to building a workable credit policy is:

User Account

All Pages