What ordering cost would enable the manager

Assignment Help Operation Management

Reference no: EM13229368

A food processor uses approximately 29,730 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding cost is 18 cents per jar, and reordering cost is $60 per order. The company operates an average of 20 days a month.

The manager would prefer ordering 10 times each month but would have to justify any change in order size. One possibility is to simplify order processing to reduce the ordering cost. What ordering cost would enable the manager to justify ordering every other day?

Reference no: EM13229368

Questions Cloud

What additional annual cost is the shop incurring by staying : What additional annual cost is the shop incurring by staying with this order size?

Work breakdown structures : The teams then compared the resulting work breakdown structures and found that they were significantly different. Is only one of the work breakdown structures correct?

What are the pros and cons of great lakes coating : what are the pros and cons of great lakes coating's not having formalized policies regarding employees behavior?

What behaviors destroy trust : What behaviors develop or elicit trust? What behaviors destroy trust? Can there be too much trust?

What ordering cost would enable the manager : The manager would prefer ordering 10 times each month but would have to justify any change in order size. One possibility is to simplify order processing to reduce the ordering cost. What ordering cost would enable the manager to justify ordering ..

Calculate the pressure in point 1 and the density : A U manometer reads 20 cm air as operating fluid and a given manometric fluid. A single branch closed tube reads 35 cm connected to point 1. If P2 = 1.2 ATM calculate the pressure in point 1 and the density of the manometric fluid.

Find the optimal solution : Does an unbounded feasible region imply that the optimal solution to the linear program will be unbounded?

Development of a work breakdown structure : Development of a work breakdown structure can be challenging. It requires a good understanding of the problem and a good understanding of the proposed solution

What are the characteristics of each system : Determine which system is more desirable and justify your answer, if initial investments for system 1 is $500,000, system 2 is $800,000, and system 3 is $1000,000.

User Account

All Pages