What is the total cost-including annual purchase cost

Assignment Help Operation Management

Reference no: EM131370547

Lans Phonesmart sells 3,000 units of DTS telephone each year. Lan buys DTS phones from a supplier at $102 per unit. The ordering cost is $50 per order and the holding cost is estimated as 35% per year of the purchase price.

What is the EOQ?

What is the total cost, including annual purchase cost, for EOQ?

Lan told the supplier that she would like to change her order quantity to the EOQ you calculated in a. The supplier, however, prefers that she order 200 units each time and is willing to offer Lan a discount price if Lan agrees to do so. What is the maximum discounted price that would justify the order of 200 units for Luli? ( Hint: the price that would make the total cost equal to that of the EOQ?

Reference no: EM131370547

Questions Cloud

What is psychological egoism : What is psychological egoism? Why is this approach attractive to some?? Linear Programming gets its name because all the constraints are linear equalities. Who is Ayn Rand? Briefly explain her philosophy of egoism and why it is often criticized. Name..

What is the difference between relativism and universalism : Describe the importance of performance benchmarking when establishing purchasing performance goals and objectives. Provide some examples of a cultural marketing blunder. Briefly define utilitarianism and name one criticism of this philosophy. What do..

Communication strategy for a project during planning : Select one of the project management topics from the list below and discuss what it is, why/how it matters within your context, what is currently done (how things currently work) and provide and detail a specific recommendation for improvement. Finan..

Formulate this problem as linear programming problem : Nutrifeed requires a minimum of 2,000 mineral units, 3,000 calories, and 4,000 units of vitamins per day for each hog. Each pound of oats supplies 200 mineral units, 100 calories, and 200 units of vitamins. Each pound of corn supplies 100 mineral uni..

What is the total cost-including annual purchase cost : Lans Phonesmart sells 3,000 units of DTS telephone each year. Lan buys DTS phones from a supplier at $102 per unit. The ordering cost is $50 per order and the holding cost is estimated as 35% per year of the purchase price. What is the total cost, in..

Which point on the participation-performance continuum : Designing and managing sport programs for the primary purpose of encouraging in sport refers to which point on the participation-performance continuum?

Many significant effect on the world civilizations : The Crusades had many significant effect on the world civilizations. What were the crusades and why did they occur? What effects and outcomes did these military entanglements have on the peoples and institutions of the 11th through 14th centuries? In..

Occasionally reform covenant not to compete : Some courts, depending on the jurisdiction, will occasionally reform a covenant not to compete. In other words, if the restraints (time restrictions, territory restrictions, scope of activity restrictions) are found to be unreasonably broad, the cour..

Observe the numbers in the equation and formulate : Observe the numbers in the equation and formulate the following problems: Nutrifeed, a hog feedlot operation near Houston, Texas blends ingredients to make low-cost feed for its hogs. Oats and corn are the principal ingredients of the hog feed. The c..

User Account

All Pages