What is the ordering cost in $ per order

Reference no: EM133336915

Upple, Inc. buys flash memory chips from Simsun, Inc. for $77 per chip. A shipment from Simsun to Upple costs $50 regardless of the number of chips shipped. To order a shipment, Upple's employee, who is paid $30 per hour, needs to spend about 20 minutes using Simsun's sales website to arrange for each shipment. Normally, 1 shipment of 300 units is ordered every month. Upple estimates that its cost of capital is 15% per year. Annual insurance cost is 2% of inventory value. Flash memory chips lose value due to obsolescence at an estimated rate of 20% per year.

a) What is the total annual demand for chips at Upple?

b) What is the purchasing cost in $ per chip?

c) What is the ordering cost in $ per order?

d) What is the holding cost in $ per chip per year?

Reference no: EM133336915

Questions Cloud

Identify elements of scarcity, choice, and opportunity cost : Identify the elements of scarcity, choice, and opportunity cost for the new battery materials plant. Prime Minister Justin Trudeau announced on July 13, 2022

What needs to be put in place to prevent the predicted : using one or more of the theories we covered to frame what needs to be put in place to prevent the predicted/forecast of future crime

Describe the importance of project governance management : Describe the importance of project governance management and its impact on project performance. And why is this topic important or not.

Qualitative and Qualitative tools and methods : Describe at least 3 types of Qualitative and Qualitative tools and methods related to people analytics and the advantages and disadvantages of each.

What is the ordering cost in $ per order : What is the total annual demand for chips at Upple? and What is the purchasing cost in $ per chip - What is the ordering cost in $ per order

What is loanable funds theory and how does it work : IS-LM model, definitions, derivation and assumptions. Short run versus Long run, differences and how they affect the assumptions behind the IS-LM model.

Explain what process should take place to decide : explain what process should take place to decide what the employee's payout should be.

Numerous statistics and facts associated : There are numerous statistics and facts associated with the need for greater diversity within the United States,

What are the critical issues in the case : What are the critical issues in the case How should they be resolved and cost overrun of approximately 60 percent. Following submittal of the final report

User Account

All Pages