Operations Management: Sustainability and Supply Chain Management, Student Value Edition (12th Edition)
12th Edition
ISBN: 9780134163512
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem 16P
Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25 for each order, with an annual holding cost of $24.
- a. Calculate the total cost for order sizes of 25, 40, 50, 60, and 100.
- b. Identify the economic order quantity and consider the implications for making an error in calculating economic order quantity.
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A bey Kuru villa, of Parkside Plumbing, uses I ,200 ofa certain spare part that costs $25 for each order, with an annualholding cost of $24.a) Calculate the total cost for order sizes of25, 40, 50, 60, and 100.b) Identify the economic order quantity and consider the implicationsfor making an error in calculating economic orderquantity.
Abey Kuruvilla, of Parkside Plumbing, uses 1,230 of a certain spare part that costs $24 for each order, with an annual holding cost of $25.
Part 2
a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places).
Order Size
Total Cost ($)
25
enter your response here
40
enter your response here
50
enter your response here
60
enter your response here
100
enter your response here
b) What is the economic order quantity?
units (round your response to two decimal places).
Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25 for each order, with an annual holding cost of $25 a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). Total Cost (S) Order Size 25 40 50 60 100
Chapter 12 Solutions
Operations Management: Sustainability and Supply Chain Management, Student Value Edition (12th Edition)
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