What is the optimal number of orders per year

Assignment Help Operation Management

Reference no: EM131433958

Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 30,000 units per year. It costs Leaky Pipe $10 to process an order to replenish stock and $1 per unit per year to carry the item in stock. Stock is received 4 working days after an order is placed. No backordering is allowed. Assume 300 working days a year. What is Leaky Pipe's optimal order quantity? What is the optimal number of orders per year? What is the optimal interval (in working days) between orders?

Reference no: EM131433958

Questions Cloud

Marked increase in foreign direct investment : Over the past 30 years there has been a marked increase in foreign direct investment (FDI) in the world economy. Please read the following Forbes article and discuss why foreing direct investments are a better solution for many multicultural firms..

Provide a variety of consulting services : The company has more than 200 clients in the US and UK. Clients can have one or more contracts with CMS to provide a variety of consulting services.

What is the rate of inflation : 1. If GDP is growing at a rate of 5% per year, in how many years will GDP double? 2. What is the rate of inflation from year 1 to year 2?

Design the product using part modelling : Modelling of parts and product assembly. To design the product shown below using part modelling (.ipt) and assembly (.iam) of Autocad 2017 - Drawings of parts and product assembly.

What is the optimal number of orders per year : Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 30,000 units per year. No backordering is allowed. Assume 300 working days a year. What is Leaky Pipe's optimal order quantity? What is the opti..

Who might need to be involved in the process : Problem - oriented policing emphasizes police solving problems in their communities.Write a 2 page paper. Address the following in your paper:Explain a problem in your community and how you might solve this problem if you were a police officer?Who m..

For the example of paternalism listed : For the example of paternalism listed, explain in your own words, A physician believes that surgery is the best available treatment for a patients cancer. The physcian does not disclose significant information about nonsurgical alternatives because h..

Compute cost of the basket for third year : 1. Suppose the price of hotdogs in years 1, 2, and 3 is $1, $2, and $3. The price of veggie burgers is $2, $3, and $4 for those years. The basket of goods is 4 hot dogs and 2 veggie burgers. Compute the cost of the basket for the first year.

User Account

All Pages