What value of ordering cost would this order size be optimal

Assignment Help Operation Management
Reference no: EM132245526

1. A firm that makes electronic circuits has been ordering a certain raw material 250 ounces at a time. The firm estimates that carrying cost is 30% per year, and that ordering cost is about $20 per order. The current price of the ingredient is $200 per ounce. The assumptions of the basic EOQ model are thought to apply. For what value of annual demand is their action optimal?

2. An organization has had a policy of ordering 70 units at a time. Their annual demand is 340 units, and the item has an annual carrying cost of $2. The assumptions of the EOQ are thought to apply. For what value of ordering cost would this order size be optimal?

Reference no: EM132245526

Questions Cloud

Warkworth furniture specializes in environmentally friendly : Warkworth Furniture specializes in environmentally friendly and sustainable furniture.
Explain the quantitative strategic planning matrix : Diagram and explain the Quantitative Strategic Planning Matrix. Describe the positive features and limitations of this analytic tool.
Identifies missed supplier evaluation site components : Correctly identifies missed supplier evaluation site components and; correctly details
Determine the total annual inventory cost : Ayo is the Purchasing Officer for a company that assembles desktop computers. Determine the Optimal Order Quantity. The Total Annual Inventory Cost
What value of ordering cost would this order size be optimal : The assumptions of the EOQ are thought to apply. For what value of ordering cost would this order size be optimal?
Liability for violation of digital millennium copyright act : If you are allowing file sharing on this game, does this open you up to liability for violation of the digital Millennium Copyright Act?
To be lean means and to be agile means : To be lean means? To be agile means? Lean has its roots in
Promotional tools and brand loyalty : Which promotional tool is most effective in gaining your loyalty over time for a product?
Determine the cycle time for the eoq model : What is the Economic Order Quantity? Determine the Cycle Time for the EOQ Model.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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