Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
12th Edition
ISBN: 9780134890357
Author: Lee J. Krajewski, Manoj K. Malhotra
Publisher: Pearson Global Edition
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Chapter C, Problem 9P
Summary Introduction
Interpretation: The ordering policy that could be recommended.
Concept Introduction: Ordering optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ.
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B). As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 679 units. Ordering costs are $7 each time an order is placed, and the holding cost is 10% of the unit cost. Your supplier provided the following price schedule.
Quantity
Price per Unit
1 - 100
$5.65
101 - 350
$4.95
351 or more
$4.55
What ordering-quantity policy do you recommend?
University Book Store purchases women's polo shirts from a supplier according to the pricing schedule below. The store sells 500,000 shirts each year. The annual cost of maintaining shirts is 25% and the ordering cost is $40.
Quantity per order unit price1- 2499 $ 352500 or more $ 32
The lowest annual acquisition cost for the Bookstore quantity is?
Huehn-Brown Products in St. Petersburg offers thefollowing discount schedule for its 4-by-8-foot sheets of quality plywood. Home Sweet Home Company orders plywood from HuehnBrown.Home Sweet Home has an ordering cost of$45. Carryingcost is 20%, and annual demand is 100 sheets. What do you recommend?
Chapter C Solutions
Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
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