What is the EOQ without the discount

Assignment Help Operation Management

Reference no: EM132247035

1. Cynthia Knott's oyster bar buys fresh Louisiana oysters for $4 per pound and sells them for $8 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for a $2 per pound. Cynthia believes that deman follows the normal distribution, with a mean of 100 pounds and a standard deviation of 17 pounds. How many pounds should she order each day? Refer to the standard normal table for? z-values.

2. Wang Distributors has an annual demand for an airport metal detector of 1,440 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 19% of the unit costs, and the ordering is $24 per order. If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. Should Wang take the quantity discount?

What is the EOQ without the discount?

Reference no: EM132247035

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