Semiprecious stones to make bracelets and rings

Assignment Help Operation Management

Reference no: EM131794449

A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.60 per stone for quantities of 600 stones or more, $9.00 per stone for orders of 400 to 599 stones, and $9.50 per stone for lesser quantities. The jewelry firm operates 115 days per year. Usage rate is 22 stones per day, and ordering costs are $53.

a. If carrying costs are $1 per year for each stone, find the order quantity that will minimize total annual cost. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)

Order quantity stones

b. If annual carrying costs are 35 percent of unit cost, what is the optimal order size? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)

Optimal order size stones

c. If lead time is 2 working days, at what point should the company reorder? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)

Reorder quantity stones

Reference no: EM131794449

Questions Cloud

What is the amount of the operating loss : What is the amount, if any, of the operating loss carry forward? How would the operating loss carry forward be reflected in the financial statements

What cycle time would match capacity : What cycle time would match capacity and demand if demand is 167 units a day, there are 1 shift(s) of 452 minutes each,

Problem on the macaulay duration of assets : The assets that back the liabilities are invested in a twenty-year bond with par value of K (paid at bond's maturity), and an annual level coupon paid.

Baling wire each day to secure bundles of newspapers : A newspaper publisher uses roughly 980 feet of baling wire each day to secure bundles of newspapers while they are being distributed to carriers.

Semiprecious stones to make bracelets and rings : A jewelry firm buys semiprecious stones to make bracelets and rings. If lead time is 2 working days, at what point should the company reorder? (

Calculate the distance in which the si concentration falls : If the diffusivity of St in Al at 450°C is about 40 µm2 min-1, calculate how far the Si will diffuse into the Al after 60 minutes at 450°C?

What is true about lost personal property : What is true about lost personal property? In order for a gift of personal property to be effective, which element(s) is/are required?

What is the nominal dollar amount of last withdrawal : You are planning to save for retirement over the next 30 years. To save for retirement you will invest $1,000 a month in a stock account in real dollars.

How much ti is needed if all is consumed : If you want to leave 50 nm of Si after silicidation to ensure low leakage current, how much TISi2 is formed and how much Ti is needed if all is consumed?

User Account

All Pages