This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A local artisan uses supplies purchased from an overseas supplier. The owner believes the ... (Read 33 times)

jilianpiloj

  • Hero Member
  • *****
  • Posts: 521
on: Dec 3, 2019

Question 1

The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20% of item cost. What is the optimal order quantity, given the following price breaks for purchasing the item? What price should the firm pay per unit? What is the total annual cost at the optimal behaviour?

QuantityPrice
1-9$2.95 per unit
10 - 999$2.50 per unit
1,000 - 4,999$2.30 per unit
5,000 or more$1.85 per unit


Question 2

A local artisan uses supplies purchased from an overseas supplier. The owner believes the assumptions of the EOQ model are met reasonably well. Minimization of inventory costs is her objective. Relevant data, from the files of the craft firm, are annual demand (D) = 150 units, ordering cost (S) = $42 per order, and holding cost (H) = $4 per unit per year.

a. How many should she order at one time?
b. How many times per year will she replenish her inventory of this material?
c. What will be the total annual inventory costs associated with this material?
d. If she discovered that the carrying cost had been overstated, and was in reality only $1 per unit per year, what is the corrected value of EOQ?
Operations Management (Canadian Edition) ¦ Heizer, Render, Griffin ¦ 1st Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jilianpiloj on Dec 3, 2019

Melissahxx

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Dec 3, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


jilianpiloj

  • Member
  • Posts: 521
Reply 2 on: Dec 3, 2019
Great answer, keep it coming :)

jamesnevil303

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Typical Examination Room Equipment and Supplies Cont. Typical Examination Room Equipment and Supplies Cont.
Recommended Maximum Doses of Local Anesthetics with Vasoconstrictor Recommended Maximum Doses of Local Anesthetics with Vasoconstrictor
Recommended Maximum Doses of Local Anesthetics with Vasoconstrictor Recommended Maximum Doses of Local Anesthetics with Vasoconstrictor
Melanoma is a local contraindication for massage. Melanoma is a local contraindication for massage.
A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ... A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ...
Sketch the graph of the following functions using local maximum/minimums, interc Sketch the graph of the following functions using local maximum/minimums, interc
Video: ATPase function - membrane transport, contractile proteins and synthesis

For a complete list of videos, visit our video library