Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a) is wrong b) what is the total annual cost associated with the best order quantity? c) Coopers-town Inc. discovers that, owing to special manufacturers

image text in transcribed
image text in transcribed
a) is wrong
b) what is the total annual cost associated with the best order quantity?
c) Coopers-town Inc. discovers that, owing to special manufacturers processes required for the buck's baseballs, It has underestimated the set up time required on a capacity constrained piece of machinery. Coopers-town add another category to the price structure to provide an incentive for large orders and thereby helps reduce the number of steps required. If the Bucks buy 15,000 baseballs or more, the price will drop to $6.30 each. Should the bucks revise their order quantity?
* Try again. Beginning with the lowest price, calculate the EOQ: Beginning with the lowest price, calculate the EOQ EOQ=H2DS, where D is annual demand, S is the ordering cost, and H is the annual holding cost, for each price level until a feasible EOQ is found. The EOQ is feasible if it lies in the range corresponding to its price. If the first feasible EOQ found is for the lowest price level, this quantity is the best lot size. Otherwise, calculate the total cost for the first feasible EOQ and for the larger price break quantity at each lower price level. The quantity with the lowest total cost is optimal. Use the formula for the total annual cost below: C=2Q(H)+QD(S)+PD where Q is the lot size, H is the annual holding cost, D is annual demand, S is the ordering cost, and P is the price per unit. The Bucks Grande exhibition baseball team plays 50 weeks each year and uses an average of 300 baseballs per week. The team orders baseballs from Coopers-Town Inc., a ball manufacturer noted for six-sigma level consistency and high product quality. The cost to order baseballs is $100 per order and the annual holding cost per ball is 39% of the purchase price. Coopers-Town's price structure is shown in the table below. a. How many baseballs should the team buy per order? The team should buy baseballs per order. (Enter your response rounded to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Four Corners Of Financial Accounting

Authors: Shaho Heidari Gandoman

1st Edition

1952751950, 978-1952751950

More Books

Students also viewed these Accounting questions

Question

5. Identify the logical fallacies, deceptive forms of reasoning

Answered: 1 week ago

Question

6. Choose an appropriate organizational strategy for your speech

Answered: 1 week ago