Calculate the optimum order quantity, Operation Management

Assignment Help:

1. The annual demand for a product is 8,000 units. The order cost is $30 for a single order. The cost of the item is $10 and the holding cost has been calculated at $3 to carry one item in stock for one year. 

Calculate: 

(a) The optimum order quantity 

(b) The number of orders to be placed annually and 

(c) The overall costs.


Related Discussions:- Calculate the optimum order quantity

Define what unions unionization does southwest airlines have, What unions /...

What unions / unionization does Southwest Airlines have?

Explain hidden-camera videos used to promote coke zero, Why do you think th...

Why do you think that the hidden-camera videos used to promote Coke Zero were an effective way to reach its target market? Do you think a similar strategy with a viral marketing ca

Agents conducted an unreasonable search as well seizure, While patrolling f...

While patrolling for illegal border crossings and drug dealers, agents of the U.S. Border Patrol spotted 15 to 20 people being loaded into a van at the rear entrance to a restauran

Order winners - operations strategy, Order Winners - Operations Strategy ...

Order Winners - Operations Strategy These are operational capabilities that directly contribute to winning business. They are generally cited as the reasons for the purchase o

Determine the supply and aggregate supply curve , In the food processing se...

In the food processing sector of a country, 100 identical small firms produce frozen fruits. Each producer is a price-taker in the market and faces the following cost conditions:

Outline the positives as well as negatives of each approach, In a group env...

In a group environment, should leaders be assigned at the beginning of a project or should leaders emerge as the group is working on the project? Outline the positives and negative

Explain perfect competition, In which of the following market structures wo...

In which of the following market structures would X-inefficiency be most likely to exist? 1. Perfect competition 2. Monopoly 3. Oligopoly 4. Monopolistic competition

Analyse the cost - benefits and resources , Undertake Systems based analysi...

Undertake Systems based analysis, including: i. Developing a systems based diagnosis of the ‘situation'; ii. Analyse one or more processes which are considered to be problem

Sunshine enterprises, What is the average value of a loyal customer (VLC) a...

What is the average value of a loyal customer (VLC) at Abby''s restaurants (see Chapter 3)? What is the best way to increase revenue given your VLC analysis

Explain the interest is compounded quarterly, Your company invests $50,000 ...

Your company invests $50,000 today at an annual interest rate of 4.00%. The interest is compounded quarterly. Calculate the first quarter interest, the total annual interest and th

Write Your Message!

Captcha
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