The Gilette Company buys a product using the price schedule given in the file P12_32.xlsx. The company

Question:

The Gilette Company buys a product using the price schedule given in the file P12_32.xlsx. The company estimates the unit holding cost at 10% of the purchase price and the ordering cost at $100 per order. Gilette’s annual demand is 1500 units.

a. Determine how often the company should order.

b. Determine the optimal order quantity.

c. At what price should the company order?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Practical Management Science

ISBN: 1497

5th Edition

Authors: Wayne L. Winston, Christian Albright

See More Books

Question Posted: Nov 03, 2018 11:09 AM

See More Questions

A manufacturing company buys a certain part in varying quantities throughout the year. Ordering cost is $ 11 per order, and holding cost is $0.14 per piece per month. Given the following demand (net...
The Eastern Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point: A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B,...
The Sunshine Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point: A, B, C, and D. Product C is fully processed by the splitoff point. Products A, B,...
The following is information for Palmer Company. \ table [ [ , Year,Year 2 , Year 1 ] , [ Cost of goods sold,$ 6 3 3 , 8 2 5 , $ 4 1 6 , 6 5 0 , $ 3 8 1 , 3 0 0 The following is information for...
Suppose some employees are coming to work dressed in a way that distracts others. How could writing a dress code policy help in this situation? If you were a manager, would you rather handle the...
Orange Phone Company has two manufacturing processes: assembly and testing. Selected production and cost data of Orange Company follow for July: Units Assembly Department Testing Department Beginning...
In Question 9, would it make any difference if Rousseau had positive proof that a fraud had been perpetrated? nu6
Willies Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $ 875,000 Shop...
What are the factors/things that are usually hard to be quantify into numbers in using the management accounting techniques such as budgets, cost and benefit analysis and standard costing. Give a...
The data in Table 6E.12 represent the number of nonconformities per 1,000 meters of telephone cable. From an analysis of these data, would you conclude that the process is in statistical control?...
Each year, Shopalot Stores sells 10,000 cases of soda. The company is trying to determine how many cases to order each time it orders. It costs $150 to process each order, and the cost of carrying a...
A consulting firm is trying to determine how to minimize the annual costs associated with purchasing high-quality paper for its printers. Each time an order is placed, an ordering cost of $50 is...
The hyponitrite ion, ON=NO, exists in solid compounds as the trans isomer. Using valence bond theory, explain why cistrans isomers might be expected for this ion. Draw structural formulas of the...
BREAD Products' pretax income for 2019 is * (1 Point) BREAD Products has no Work in Process or Finished Goods inventories at the close of business on December 31, 2018. The balances of BREAD's...
Convert the following line of code into assembly language. A (A B)+(BA) Where A and B are both 8-bit variables Activate Windows
14. Create a one variable Data Table from what you just copied and pasted giving the total sales for each department, and the Largest Sale from each department. Start your Criteria range in cell A1....
E4.1 (LO 1), C The following independent situations require professional judgment for determining when to recognize revenue from the transactions. a. Southwest Airlines sells you an advance-purchase...
Spring Flings Company, a fashion retailer that specializes in colorful graphic tees, prepares a master budget on a quarterly basis. The company has assembled the following data to assist in preparing...
Determine the convergence or divergence of the series when (a) x = 1 (b) x = 2 (c) x = 3 (d) x is a positive integer. n=1 (n!) (xn)!
Synthesize the products by drawing out reagents and intermediates along the way. `N H. OH HO HO
If sales promotion spending continues to grow often at the expense of media advertis inghow do you think this might affect the rates charged by mass media for advertising time or space? How do you...
As a community service, disc jockeys from radio station WMKT formed a basketball team to help raise money for local nonprofit organizations. The host organization finds or fields a competing team and...
How should the acceptance of a profit-oriented, a sales-oriented, or a status quooriented pricing objective affect the development of a companys marketing strategy? Illustrate for each.
Given that rJ = 6.3%, rRF = 4.1%, and rM = 9.4%, determine the beta coefficient for Stock J that is consistent with equilibrium.
Simon Companys year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 33,019 $ 37,839 $ 38,623 Accounts receivable, net 93,822 65,556 54,152 Merchandise inventory 117,963 89,253...
PLEASE REFER TO THE 2018 ANNUAL REPORT OF STARBUKS FOR THE YEAR FISCAL YR 2018, ENDING SEPTEMBER 30, 2018. Refer to the management discussion & analysis section and write a one page summary...

The Gilette Company buys a product using the price schedule given in the file P12_32.xlsx. The company

Question:

Step by Step Answer:

Model Ordering a product Inputs Setup cost 100 Unit storage cost 0 Annual int...View the full answer

Practical Management Science

Students also viewed these Business questions