What is the optimal order size

Assignment Help Operation Management

Reference no: EM13967289

A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.6 per stone for quantities of 600 stones or more, $9.9 per stone for orders of 400 to 599 stones, and $10 per stone for lesser quantities. The jewelry firm operates 139 days per year. Usage rate is 25 stones per day, and ordering costs are $48. a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Round your intermediate calculations to the nearest whole number.) Order quantity stones b. If annual carrying costs are 23 percent of unit cost, what is the optimal order size? (Round your intermediate calculations to the nearest whole number.) Optimal order size stones c. If lead time is 7 working days, at what point should the company reorder? (Round your intermediate calculations to the nearest whole number.) Reorder quantity stones

Reference no: EM13967289

Questions Cloud

Determine optimal order quantity-number of orders per year : A mail-order house uses 17,090 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. Number of Boxes Price per Box 1,000 to 1,999 $1.25 2,000 to 4,999 1.20 5,000 to 9,999 1.15 10,0..

Explain the terms optimization and objective function : Explain the following terms: optimization, objective function, optimal solution, constraint, constraint function, feasible solution, and binding constraint.

Find per-unit equivalent circuit of this transformer bank : Find the per-unit equivalent circuit of this transformer bank. Find the voltage regulation of this transformer bank at the rated load and 0.90 PF lagging.

Determining the profit maximization : Creative Accountants, Ltd., is a small San Francisco-based accounting partnership specializing in the preparation of individual (I) and corporate (C) income tax returns. Prevailing prices in the local market are $125 for individual tax return prep..

What is the optimal order size : A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.6 per stone for quantities of 600 stones or more, $9.9 per stone for orders of 400 to 599 stones, and $10 per stone for lesser quantities. Order qu..

Provide information and recommendations : Local government leaders have asked you to provide information and recommendations for increasing sustainability in the community. Perform an initial search to learn about green initiatives for a city in your area.

What is the expected profit for ordering that single bottle : A supermarket, sells soy milk bottles at 2.00 dollar each to the customers and buys them at 0.80 dollar each with a sixty-day expiration. When expired, they are returned to the supplier for 0.20 dollar each. What is the probability that these two ev..

Explanation of hr strategies and potential solutions : The final project deliverable will be an 8-10 page paper, APA formatted, with an introduction, description of the problem, explanation of HR strategies and potential solutions, a chosen solution, implementation of HR strategy, and a conclusion.

How does your project improve a current practice : Using citations, answer the following questions in order: How does your project improve a current practice? If your action research project is successful, how could your project impact your field of interest

User Account

All Pages