User Account

All Pages

What is the economic order quantity for nittany fans

Assignment Help Business Management
Reference no: EM133022803

Nittany Fans of Lewistown, Pennsylvania, is a distributor of industrial fans used in plants, warehouses, and other industrial facilities. Its market area encompasses most of Pennsylvania, eastern Ohio, and New Jersey. The fans are manufactured in Neenah, Wisconsin, and currently shipped to Lewistown via rail transportation. Kenny Craig, vice president of logistics, has asked his staff to evaluate using motor carrier service to ship the fans.

Nick Gingher, director of distribution, has collected the following information:

  • Annual demand: 36,000 fans
  • Fan value (price): $4,000 each
  • Inventory carrying cost (annual): 25%
  • Cost per order to replenish inventory: $200
  • In-transit inventory carrying cost: 15%
  • Order cycle time using motor carrier: 2 days
  • Rail rate: $1.00 per cwt (100 1bs.)
  • Motor carrier rate: $1.25 per cwt
  • Unit weight: 250 1bs. Per fan

QUESTIONS 

  1. What is the economic order quantity for Nittany Fans in units? In pounds?
  2. What is the total cost (not considering transportation-related costs) of the EOQ?
  3. What is the total cost for using rail transportation?
  4. What is the total cost for using motor carrier transportation?
  5. Which alternative should Nittany Fans use?

Reference no: EM133022803

Questions Cloud

Design a job description and job specification : Design a job description and job specification to be used in placing an advert and selecting applicants for the Director of e-Marketing position
Goal of business for daily bread food bank : What is the goal of business for Daily Bread Food Bank?
Perspective of medical ethics : A case study from the perspective of medical ethics: refusal of treatment in an ambulance
Outline three different types of operational plans : Outline three different types of operational plans that can be used in an organisation and provide an overview of the purpose of each of the types of operationa
What is the economic order quantity for nittany fans : Nittany Fans of Lewistown, Pennsylvania, is a distributor of industrial fans used in plants, warehouses, and other industrial facilities. Its market area encomp
Compare and contrast the classifications of employees : Compare and contrast the classifications of employees or independent contractors. Assess why it is important to classify workers correctly.
How does unemployment affect attitudes about business : How does unemployment affect attitudes about business? (Briefly answer)
Comprehensive strategy document for an organisation : Adraw up a comprehensive Strategy Document for an organisation that you are familiar regarding the strategy to be followed by the organization to succeed in the
What is project payback period : The Allied Group is considering two investments. The first investment involves a packaging machine, which can be used to package garments for shipping orders to

Reviews

Write a Review

Business Management Questions & Answers

  Describe the decision making model

Peter is a manager working in a small boutique hotel located in a historical site in Hong Kong. Since the beginning of COVID-19, sales have decreased dramatical

  How does an individual perspective

How does an individual's perspective influence their leadership style?

  Search literature and other sources of information

Search literature and other sources of information, and make a justified posting on the relationship between perceived quality and satisfaction.

  Organizational affilate managed by stockholder

Please help me answer these questions? Does your current work, school, or organizational affilate managed by stockholder or stakeholde approach?

  What are the challenges in managing diversity

What is diversity? What are the challenges in managing diversity? How do you manage these challenges? What are the benefits of diversity?

  Deming and juran approaches to quality improvement

Describe one of the Deming and Juran approaches to quality improvement and how its use might affect a company.

  Transnational and metanational structures

Why companies choose matrix, transnational and metanational structures and why? Why large multinational companies choose metanational structures?

  Explain recent legislation requires ceos of public

Explain Recent legislation requires CEOs of public corporations to sign an affidavit stating that all accounting put forth by the company is accurate and not misleading

  Provide a brief description of the business visited

It is recommended you visit a relative small but active business operation for this research.  A company with 50 to 100 employees can be better evaluated than a large corporation with many different work centers employing thousands of workers.  Yo..

  Company relationship with local, national and global media

Discuss why is it important to inform the external public's of significant programs within the company and what is your company's relationship with the regional, national, local, and global media?

  What factors contributed to taco bell early success

What factors contributed to Taco Bell's early success? Which of the promotional elements were used by Taco Bell in its Doritos Locos Tacos campaign?

  Organization would benefit from using one framework

Discuss why a financial services organization would benefit from using one framework over another

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd