Explain the manager would prefer ordering, Operation Management

Assignment Help:

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?


Related Discussions:- Explain the manager would prefer ordering

Explain the characteristics of an effective team, Question 1: Explain h...

Question 1: Explain how a leader can enhance the performance in a team? Question 2: (a) Define ‘A Team' and explain the different stages in ‘Team Development'. (b)

Determine the dominant operations performance objectives, 1. When an organi...

1. When an organisation is stepping up production or availability of a service what are the dominant operations performance objectives?  Answer: This is a very difficult questio

Explain production and shipping costs, Blue Computers, a major PC manufactu...

Blue Computers, a major PC manufacturer in the United States, currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million units a year and the

Explain what key technological features of sap, What key technological feat...

What key technological features of SAP set it apart from conventional business accounting/planning/control software?

Find market price of the bond, SWH Corporation issued bonds on January 1, 2...

SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 4.5%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on

Network diagram, 5. A network consists of the following list. Times are giv...

5. A network consists of the following list. Times are given in weeks. Activity Preceding Optimistic Probable Pessimistic A -- 5 11 14 B - 3 3 9 C -- 6 10 14 D A, B 3 5 7 E

Propose an ordering policy, Bookstore buys a popular freshman physics book ...

Bookstore buys a popular freshman physics book at $30 each and sells it to students at $50 each.  The same book is used for Fall and Winter terms.  The demand for books is distribu

Define what is the probability that you will make money, The owner of Firew...

The owner of Firewood-2-Go is considering buying a hydraulic wood splitter which sells for $60000. He figures it will cost an additional $80 per cord to purchase and split wood wit

Discuss regarding the interval estimate, Increasing the size of the samples...

Increasing the size of the samples in a study to estimate the difference between two population means will increase the level of confidence that a decision maker can have regarding

How make training programs more cost effective, Write a one/two-¬page discu...

Write a one/two-¬page discussion of training program development costs discussing how companies may find ways to make training programs more cost effective.

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