What is the impact to economic order quantity

Assignment Help Operation Management

Reference no: EM131156023

A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The lead-time is doubling from 2 days to 4 days, what is the impact to the economic order quantity? Why?

Reference no: EM131156023

Questions Cloud

Meetings are the biggest waste of time at work : "Meetings are the biggest waste of time at work." Do you agree or disagree with this statement. Give examples and support your position.

Preparing routine messages : Preparing Routine Messages Routine messages should be direct and front-loaded. The primary message should have ten words or fewer, and you should typically place it in the subject line of your email to immediately capture attention. 45 seconds to one..

Boundaries between private life and work life : Do you think the boundaries between private life and work life are blurred by communication technology such as social networking? What standards or principles do you want to use the key parts of your private life separate from your colleagues?

Queuing system in your place of business : List three examples of problems you could solve with a queuing system in your place of business or where you shop. What kinds of problems in your daily lives have you seen that a queuing system might solve?

What is the impact to economic order quantity : A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The lead-time is doubling from 2 days to 4 days, what is the impact to the economic order quantity? Why?

The goal of the firm is to make money : Dr. Eli Goldratt states that "THE GOAL OF THE FIRM IS TO MAKE MONEY". Do you agree or disagree with this statement? Support your position with at least two examples of companies that may or may not follow this statement.

Outline the steps large high-technology organization : Outline the steps a large high-technology organization goes through to identify its plan for personnel acquisition for the next year. Identify the uncertainties that apply to each step.

Supply any feasible production plan : A winemaker in California's Napa Valley must decide how much of two types of wine she will produce from a particular variety of grapes. Each liter of table wine yields $8.25 profit, while each liter of dessert wine produces $3.25 profit. The labor ho..

How does it impact you in the past and in the future : How does IT impact you in the past and in the future? Give examples of how you use data, information, and knowledge. Explain how IT is related in your chosen field.

User Account

All Pages