What is the annual cost now

Reference no: EM13295499

Danny Steel Inc. fabricates various products from two basic inputs, bar stock and sheet stock. Bar stock is used at a steady rate of 1000 units per year and costs $200 per bar. Sheet stock is used at a rate of 500 units per year and costs $150 per sheet. The company uses a 20% annual holding cost rate, and the fixed cost to place an order is $50, of which $10 is the cost of placing the purchase order and $40 is the fixed cost of a truck delivery. The plant run 365 days per year.

a) Determine EOQ and optimal order intervals, and annual costs for bar stock and sheet stock. What fraction of the total annual cost consist of fixed trucking cost?

b) Using a week (7 days) as a base period, round the orders to nearest power of 2. If you charge the fixed trucking fee only once for deliveries that coincide what is the annual cost now?

Reference no: EM13295499

Questions Cloud

Calculate the present value of the generated cash flows : Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).) Present value $ Requirement 2: Can you afford the new system?

What is the annual cost now : Using a week (7 days) as a base period, round the orders to nearest power of 2. If you charge the fixed trucking fee only once for deliveries that coincide what is the annual cost now?

Draw in third angle projection : Draw in Third Angle Projection. the following orthogonal views - a Sectional Side View from 8 on a vertical cutting plane through the centre line of the bearing journals

What will be its speed at the bottom : A box slides down a rough, 25 Degree incline with a coefficient of kinetic friction between the box and incline of 0.7. What will be its speed at the bottom

Determine parity-check digit for number to error detection : a single parity check code used in computer listings of registatration numbers found by doubling alternate digits, beginning from the right, and adding the digits modulo-10. the parity check digit is found by taking the tens complement of this sum..

Explain the concentration of the diluted naoh solution : If 42.1 mL of 1.02 M sodium hydroxide, measured using a graduated cylinder, is placed in a beaker filled with 300 mL of DI water, what is the concentration of the diluted NaOH solution

Find the weight of the heaviest ball vacuum cleaner can lift : An advertisement for a certain portable vacuum cleaner shows off its power with a photograph of the vacuum-cleaner wand suspending a bowling ball by the strength of its suction. find the weight of the heaviest ball the vacuum cleaner can lift

What is the yearly holding and setup cost for this item : Quarter-inch stainless-steel bolts 1 ½ inches long are consumed in a factory at a fairly steady rate of 60 per week. The bolts cost the plant 2 cents each. It cost the plant $12 to initiate an order, and holding costs are based on an annual intere..

User Account

All Pages