What is your EOQ order quantity

Assignment Help Operation Management
Reference no: EM132232877

Assume you are in charge of purchasing an item that has a monthly demand of 65 units. It has been calculated that the cost to place an order with your supplier is $11 per order. The current unit price is $55 and the carrying cost is estimated to be 15% of unit cost per year.

a. Using the Economic Order Quantity Model (EOQ), evaluate your current situation at $55 per unit. (Round to 2 decimal places)

What is your EOQ order quantity?

Annual Cost of Goods Sold (COGS):

Annual ordering cost:

Annual holding cost:

Annual total cost:

b. Your supplier has offered you a possible 2% discount on the price if you purchase in bulk (minimum quantity not specified yet). Using the Economic Order Quantity Model (EOQ), evaluate the effect of this 2% discount on per unit cost change on your annual costs.

What is your new EOQ order quantity?

Annual Cost of Goods Sold (COGS):

Annual ordering cost:

Annual holding cost:

Annual total cost:

Please show work.

Reference no: EM132232877

Questions Cloud

Supporting information about your action plan : The written portion of the paper is to include one-two paragraphs that provide supporting information about your action plan
Toms shoes–case study : Founded in 2006 by BLAKE MYCOSKIE, TOMS Shoes was an American footwear company based in Santa Monica, California.
What the relational view of competitive advantage proposes : With the aid of an example, explain what the relational view of competitive advantage proposes.
How are the programs similar : Compare and contrast income protection programs and pay for time not worked programs, both of which are usual elements of benefits programs.
What is your EOQ order quantity : Assume you are in charge of purchasing an item that has a monthly demand of 65 units. What is your EOQ order quantity?
Creation and evaluation of code of ethics : ortfolio Project Assignment Option #1: Creation and Evaluation of Code of Ethics. The Portfolio Project for this course is comprised of two parts.
Discuss any issues that you may have with particular model : discuss any issues that you may have with this particular model.
Explain the common causes of expatriate failure : Explain the common causes of expatriate failure. What are the major success factors for expatriates? Explain the role and importance of each.
Discuss the principle reasons that organizations have : Discuss the principle reasons that organizations have moved to defined contributions plans from defined benefit plans, and the specific impact to employees.

Reviews

Write a Review

Operation Management Questions & Answers

  Identify potential threat to independence

Identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified.

  Discuss steps you would take to influence organization

Discuss steps you would take to influence organization and other stakeholders to improve chances of your designated successor assuming your position.

  What are the main reasons programs fail

What are The main reasons programs fail? What information is necessary for an evaluator to distinguish among the reasons for program failure?

  Why were americans so afraid of domestic subversion

Why were Americans so afraid of domestic subversion. Taking my son to a college where technology has replaced serendipity! Please summarize the essay.

  Certificate of deposit would be what percent

If a bank advertises 9 percent annual interest rate on a one-year certificate of deposit and you anticipate the rate of inflation to rise to 2 percent during

  Two component pieces used in project management plan

The focus of study is the Microsoft HoloLens and be able to create a project plan to address its field of vision limitations for a more successful marketing and business profit.  Work Package/Task Description and Detail. Work Breakdown Structure

  Compare the term entrepreneurship with the term startup

Compare the term “entrepreneurship” with the term “startup.”

  Which system has the largest incremental b-c ratio

A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley. Which system has the greatest B-C ration? Which system has the largest incremental B-C ratio (based on differences betwe..

  Paid to the distinct issues facing service business

In your business courses or marking how much attention is paid to the distinct issues facing service business.

  What are the major customer or market needs

What is Coach, Inc. past, present, and future market size and growth rate? What is the past and expected future growth rates? What are the Major customer or market needs? What are the Macro-trends impacting the market?

  What is cost-plus-fixed-fee contract

What is a firm-fixed price contract? What is a fixed-price-incentive-fee contract? What is cost-plus-incentive-fee contract? What is cost-plus-fixed-fee contract?

  Prepare a weighted competitive analysis

Prepare a Weighted Competitive Analysis for Papa John's Pizza using at least six (6) Key Success Factors and at least three (3) other pizza companies. Based on your weighted competitive assessment, provide an assessment of Papa John's Pizza.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd