Oleg Blokhin Sportwear uses, for the goalkeeper gloves, a time sensitive and unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. He uses 250 pounds per month of the chemica
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Oleg Blokhin Sportwear uses, for the goalkeeper gloves, a time sensitive and unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. He uses 250 pounds per month of the chemical, estimates the holding cost to be £4.25 (because of spoilage), and estimates order costs to be £20 per order. The cost
for the first part: Identify and discuss what quantity should be ordered, and which supplier should be used?
- quantitative answer.
- please show step by step calculation so i know what you did to get answer.
- you can type it - no need for writing it.
now for anther question: Discuss factor(s) that should be considered besides total.
thank you very much:)
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i have found anther answer for this question on bartleby and it has a lot less working out and he didnt give answer to second question but the answer he gave for the first one is very different i am not sure which one to use below is his answer:
The question is related to Economic order quantiy Economic Order Quantity is that level of inventory at which ordering cost and handling cost are minimum. It is calculated with the help of following formula
Economic Order Quantity = √2RO ÷ C
R = Annual Requirment
C = Carrying or Holding cost
O = Ordering Cost
Economic Order Quantity = √2RO ÷ C
Economic Order Quantity = √2 × 3000 × 20 ÷ 4.25
Economic Order Quantity = √28,235.294117647
Economic Order Quantity = 168.0336100834 pounds
R = Annual Requirment i.e.250 × 12 = 3000 pounds per annum.
C = Carrying or Holding cost i.e. £4.25
O = Ordering Cost i.e. £20
Quantity to be ordered = 168.03 pounds.
Supplier = Vendor 1 should be used as the cost per pound for 168 pounds is £32.25 (as per table given) being lower than all other vendors.
Quantity to be ordered = 168.03 pounds.
Supplier = Vendor 1 should be used as the cost per pound for 168 pounds is £32.25 (as per table given) being lower than all other vendors.
by Bartleby Experti was reading this answer and the way its calculated is a longer process then what someone else wrote can you check if ishould use this one that bartleby has given me or the other one:
The question is related to Economic order quantiy Economic Order Quantity is that level of inventory at which ordering cost and handling cost are minimum. It is calculated with the help of following formula
Economic Order Quantity = √2RO ÷ C
R = Annual Requirment
C = Carrying or Holding cost
O = Ordering Cost
Economic Order Quantity = √2RO ÷ C
Economic Order Quantity = √2 × 3000 × 20 ÷ 4.25
Economic Order Quantity = √28,235.294117647
Economic Order Quantity = 168.0336100834 pounds
R = Annual Requirment i.e.250 × 12 = 3000 pounds per annum.
C = Carrying or Holding cost i.e. £4.25
O = Ordering Cost i.e. £20
Quantity to be ordered = 168.03 pounds.
Supplier = Vendor 1 should be used as the cost per pound for 168 pounds is £32.25 (as per table given) being lower than all other vendors.
Quantity to be ordered = 168.03 pounds.
Supplier = Vendor 1 should be used as the cost per pound for 168 pounds is £32.25 (as per table given) being lower than all other vendors.
by Bartleby Expert