What is the optimal order quantity

Assignment Help Other Subject

Reference no: EM13266672

Omar Haaris receives 5000 tripods annually from Top-Grade Supplier to meet his annual demand. Omar runs a large photographic outlet, and the tripods are used primarily with 35mm cameras. The ordering cost is $15 per order, and the carrying cost is $0.50 per unit per year. Weekly demand is 100 tripods.

A) What is the optimal order quantity?

B) Top-grade offering a new shipping option. When an order is placed, top-grade will ship one third of the order every week for three weeks instead of at one time. What is the order quantity if Omar chooses to use this option? To simplify your calculations, assume that the average inventory is equal to one-half of the maximum inventory level for Top-Grade new option.

C) Suppose Top-Grade suppliers offers to ship one-fifth of the order every week for five weeks. What is the order quantity under this option? Make the same assumption as in part (B).

D) Calculate the total cost for each option.

Reference no: EM13266672

Questions Cloud

The expected value of a probability distribution : The expected value of a probability distribution is:

Delivery strategies : Provide examples of three value-added support strategies geared toward helping a nursing home to implement a goal of providing a safe and caring environment for its residents.

Multitude of different types of graphs inclluding charts : Using common software such as Word excel, powerpoint, users can create a multitude of different types of graphs inclluding charts, line graphs flow charts and Gantt charts.

Value-added strategies : Differentiate between implementing a value-added strategy and mapping it for sustainability. Provide one example of a strategy and one environmental factor that management for this organization should consider when mapping the organization for sustai..

What is the optimal order quantity : Omar Haaris receives 5000 tripods annually from Top-Grade Supplier to meet his annual demand. Omar runs a large photographic outlet, and the tripods are used primarily with 35mm cameras. The ordering cost is $15 per order, and the carrying cost is $0..

Certain investment problem under condition of uncertainty : What are some of the sources where we can obtain partial probabilities of events for a certain investment problem under the condition of uncertainty?

Define three criteria for evaluating effective team work : Define the three criteria for evaluating effective team/group work (as stated in your text) and analyze whether the a team in the video is effective or not. Provide a review of Tuckmans five stages of group formation and evaluate the stages of the in..

Higher rate of pre-term pregnanc : An investigator observes that women who drink more than 4 alcoholic drinks per day have a higher rate of pre-term pregnancy. In fact, the odds ratio is 6.47. This means that:?

Make regarding your hypothesis : You conduct the study above and obtain a t-value of 2.06. With 11 degrees of freedom, the critical value of a one-tailed t-test is 1.796. What decision do you make regarding your hypothesis?

User Account

All Pages