Quantity discount affects the holding cost per set per time

Assignment Help Operation Management

Reference no: EM132245392

UTSI Cafeteria is going to purchase plastic sets of fork, knife, spoon for the people who buy “to go” lunch. For orders less than 100 sets, the cafeteria is charged 30 cents per set. For orders more than 100 but fewer than 500, the cafeteria is charged 20 cents per set. For orders above 500, the cafeteria is charged 15 cents per set. Suppose that ordering cost is $8 per order, holding cost per set per year is 20% of the price of the set.

a) Set up the problem: What are the costs and demands (S, H, D)? Also decide whether the quantity discount affects the holding cost per set per time.

b) Compute the EOQ quantity.

c) Find the optimal number of sets to purchase.

Reference no: EM132245392

Questions Cloud

Mean and standard deviation of usage during lead time : What are the mean and standard deviation of usage during lead time? What is the reorder point? What is the safety stock?

Negotiation in government contracting encompasses : Negotiation in Government contracting encompasses. They following questions are in regards to Federal Government Contracting.

Develop the project work breakdown structure : Develop the project Statement of Work document to include the following information: As part of your Statement of Work for your project, you will create a Work.

Reflect on the goals that you set for yourself : Reflect on the goals that you set for yourself at the beginning of the semester, and evaluate your progress.

Quantity discount affects the holding cost per set per time : What are the costs and demands (S, H, D)? Also decide whether the quantity discount affects the holding cost per set per time.

Explain the key approaches to operations management : Explain the key approaches to operations management and the role that leaders and managers play. Evaluate how leaders and managers can improve

Determine the expected costs for each named risk : As a project manager for this company, you are to analyze the risks associated with the project. Risks should be identified and defined as cost, probability.

Compare the different portraits of jesus : Compare and Contrast the different portraits of Jesus based on the synoptic Gospels? Who do the Gospel say Jesus is?

Null hypothesis and the alternative hypothesis in study : Explain the difference between the null hypothesis and the alternative hypothesis in a study.

User Account

All Pages