Ordering and carrying costs by using the EOQ

Assignment Help Operation Management
Reference no: EM132146140

A produce distributor uses 786 packing crates a month, which it purchases at a cost of $9 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $27. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) Savings $--------- per year.

Reference no: EM132146140

Questions Cloud

Supportive confrontation strategy : List the six steps of the conflict resolution through supportive confrontation strategy.
Discuss the program in detail : You are assigned to design a pre-departure training program for a British family moving to UAE. Discuss the program in detail.
Identify the KPIs and Project Budget for all move goers : We would like to expand to potentially Rome Sydney please identify the KPIs and Project Budget for all move goers.
Analyze different types of strategies : Analyze different types of strategies (cost leadership, differentiation, and focus/niche) and select which one you would deem more appropriate.
Ordering and carrying costs by using the EOQ : How much could the firm save annually in ordering and carrying costs by using the EOQ?
Describes the overall goal of project portfolio management : Which of the following best describes the overall goal of project portfolio management
Board member for tortuous interference with contract : Discuss the liability of the (1) CFO and (2) the board member for tortuous interference with contract.
Deciding the type of relationship formed with customers : Which factors should a salesperson consider when deciding the type of relationship formed with customers?
Creation and maintenance of the web resource : Are there any other indications that the material is updated frequently to ensure currency of the data - write an evaluation according to the criteria

Reviews

Write a Review

Operation Management Questions & Answers

  What is the purpose of each type of job analysis

What is the purpose of each type of job analysis, and how can the three types described in this chapter be combined to produce and overall understanding of work

  Describe ikea strategy towards its suppliers

By the early 1970s IKEA had established itself as the largest furniture retailer in Sweden. What is IKEA's strategy towards its suppliers? How important is this strategy to IKEA's success?

  What-in absolute terms-is the per unit inventory cost

how fast does the company turn its inventory? What—in absolute terms—is the per unit inventory cost for a product that costs $1,000?

  In the value ratio costs refer to

In the Value Ratio, “costs” refer to

  Promotion of sales opportunities in a service transaction

What ethical issues are involved in the promotion of sales opportunities in a service transaction? How can an Internet service encounter be a memorable experience? What are the characteristics of early adopters of self-service? How do the five dimens..

  Assist expatriates in getting ready for overseas assignments

You have been asked to design a Web site that would assist expatriates in getting ready for their overseas assignments. What kinds of information would you include on the site?

  The marketing functions main concern is with

The marketing function's main concern is with

  Organization mission-value important to strategy formulation

Why are an organizations mission and values important to strategy formulation? How does strategic management affect organizational financial performance?

  Formulate a linear programming model

Formulate a linear programming model for this problem to determine how many cases of small cups.

  Social responsibility in developing a strategic plan

Define and explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas.

  Derive based on your personal diversification strategy

What conclusions do you derive based on your personal diversification strategy?

  Discuss any sort of personal benchmarking

Discuss any sort of personal benchmarking you might conduct in order to boost your performance as a student, an athlete, or a hobbyist. Provide an example to support your discussion.

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