Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Data: D = 7000 flyers, Q = 500 flyers S = $100, k = 28%, C = $2, number of days/year = 350 days   Calculate the total cost and the total inventory cost to see if the company's ordering policy needs to be changed. If yes, how should it be changed?   Question 2: This year's forecast for D is 8000 flyers/year. The following price list is given according to quantity:   Quantity   Price 599- 999   2,5$   1000- 1999   2$   > 2000   1,5 $   How should the ordering policy be changed?

Data: D = 7000 flyers, Q = 500 flyers S = $100, k = 28%, C = $2, number of days/year = 350 days   Calculate the total cost and the total inventory cost to see if the company's ordering policy needs to be changed. If yes, how should it be changed?   Question 2: This year's forecast for D is 8000 flyers/year. The following price list is given according to quantity:   Quantity   Price 599- 999   2,5$   1000- 1999   2$   > 2000   1,5 $   How should the ordering policy be changed?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question

Exercise on EOQ and TAIC:

 

Data: D = 7000 flyers, Q = 500 flyers S = $100, k = 28%, C = $2, number of days/year = 350 days

 

Calculate the total cost and the total inventory cost to see if the company's ordering policy needs to be changed. If yes, how should it be changed?

 

Question 2: This year's forecast for D is 8000 flyers/year. The following price list is given according to quantity:

 

Quantity

 

Price

599- 999

 

2,5$

 

1000- 1999

 

2$

 

> 2000

 

1,5 $

 

How should the ordering policy be changed?

 

(Note: questions about ordering policies like this require finding two factors: when to order and how much to order each time.) 

Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS