What is the optimal order quantity for packages of napkins

Assignment Help Operation Management

Reference no: EM132247093

Please Help. Please do NOT use excel. Please do NOT show in excel. Please SHOW ALL WORK INCLUDING FORMULAS. Please keep the problem VERY organized. Do NOT show by handwriting please type it out. For Part B. Please use Maximum Inventory formula and Average inventory formula.

A restaurant purchases paper napkins in packages of 1000. Demand for napkins at this restaurant is about 1,215 packages a year. It costs $10 to order and receive a shipment of napkins, and carrying costs per package are $75 per year.

a. What is the optimal order quantity for packages of napkins, to the nearest whole number?

Economic order quantity bags

b. What is the average number of packages of napkins in inventory, to the nearest whole number?

Average number of bags

c. How times will the restaurant order napkins per year (to the nearest whole number)?

Number of orders per year

d. Compute the total of ordering and carrying costs for napkins. (Round to the nearest whole number, but do not type the dollar sign.)

Total cost $

e. Calculate the change in total annual cost, if per-package holding costs went up by $9 per year. (Round your intermediate calculations to 2 decimal places and final answer to 2 decimal places, but do not type the dollar sign.)

Increase by $

Reference no: EM132247093

Questions Cloud

Release is procedurally or substantively unconscionable : What factors should the appeals court take into account when deciding whether the release is procedurally or substantively unconscionable?

Identify the right talent for their organizations : A major issue facing many organizations today is whether they can identify the "right" talent for their organizations.

Organizational theory and organizational development : Clarify the differences between organizational theory, organizational development, and human resources management in healthcare.

Debbie calculates the unique-event risk : The suppliers are well-established and located in the same country. Debbie calculates the "unique-event" risk for each of them to be 3%

What is the optimal order quantity for packages of napkins : What is the optimal order quantity for packages of napkins, to the nearest whole number?

Create security awareness campaign focused : Create a security awareness campaign focused on this topic. Include in this plan specifics on how you intend to deliver the message.

Union actions are necessary for union bargaining influence : Explain why these or other union actions are necessary for union bargaining influence and to strengthen an advancing global economy.

Lead to more informed and engaged business people : Some argue that new technologies such as e-mail, social media, and texting will lead to more informed and engaged businesspeople.

Terms and conditions of the agreement stated : Does the fact that one of the “Terms and Conditions” of the agreement stated that all packing lists must be submitted “within 48 hours after ship sailed”

User Account

All Pages