Question: A mining company routinely replaces a specific part on their equipment. The usage rate is 40/week, and there is no seasonality. The supplier of the

A mining company routinely replaces a specific part on their equipment. The usage rate is 40/week, and there is no seasonality. The supplier of the part offers the following discount structure

Q<300 units - $10/unit

Q>300 units - $9.7/unit

The fixed cost of a replenishment is $25, and a carrying cost is $0.26/unit/year.

What replenishment size should be used?

Must show all work handwritten.

Step by Step Solution

★★★★★

3.48 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To solve this problem we need to determine the optimal order quantity that will minimize the total cost which includes the ordering holding and purcha... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

What sample size should be used if we would like to estimate the mean age of the college students at a particular campus with 95% confidence? We would like to be accurate to within 3 years and we...

QUESTION 1 Suppose that the data from a student opinion poll in which they rated the instructional use of a computing facility in courses in English, Geology and Chemistry are Course English Geology...

On December 31, 2019, Janice Company sold used equipment with carrying amount of P 2,000,000 in exchange for a noninterest-bearing note of P 5,000,000 requiring ten annual payments of P 500,000. The...

A mining company routinely replaces a specific part on a certain type of equipment. The usage rate is 4 0 per week and there is no significant seasonality. The supplier of the part offers the...

: A mining company routinely replaces a specific part on a certain type of equipment. The usage rate is forty per week, and there is no significant seasonality. The supplier of the part offers the...

A mining company routinely replaces a specific part on a certain type of equipment. The usage rate is 40 per week and there is no significant seasonality. The supplier of the par offers the following...

A mining company routinely replaces a specific part on a certain type of equipment. The usage rate is 4 0 per week and there is no significant seasonality. The supplier of the part offers the...

Thiourea reacts with diethyl malonate and its alkyl derivatives in the same way that urea does. Give the structure of the product obtained when thiourea is used instead of urea in the synthesis of...

A sodium source emits light at appears to an observer as of 522 nm, who was moving at (a) 0.12 c towards the source (b) 0.12 C (c) 0.06 0 (d) 0.06c 589 nm which a copper green line away from the...

Which of the following represents the Domain ( D ) and Range ( R ) for the following? y = ( x ^ ( 2 ) - 5 x + 4 ) / ( x - 4 ) none of these D:x ! = 4 and R:y ! = 3 D:x ! = 3 and R:y ! = 4 D:x ! = - 4...

5. Assume that output markets are perfectly competitive and the price of the output is fixed. Marginal revenue product of labour is negatively sloped, due to: a) diminishing marginal utility. b)...

Consider the oxidation of solid titanium to solid rutile (TO,). 3. Get the standard entropies of the products and reactants (unit: Joules/K), and calculate the standard entropy change for the...

5. For the beam and loading shown a. draw the shear and bending-moment diagrams, (15 points) b. determine the maximum absolute values and locations of the shear and bending moment. (5 points) First...

1. The beam CA is supported by a pin connection at C and a cable AB. Calculate a. the tension in the cable AB (10 points) b. and the reaction on force at C (magnitude and direction) (10 points) for...

2, The handcart has four wheels and the they are locked to prevent accidental slide of the cart. The mass of the crate on the carte is W kg, The coefficient of static friction between wheels and...

How does monopoly or oligopoly power lead to inefficient outcomes in the market system

A mining company routinely replaces a specific part on a certain type of equipment. The usage rate is 40 per week and there is no significant seasonality. The supplier of the part offers the...

1) A mining company routinely replaces a specific part on one of its machines; on average, about 2400 a year of these parts are replaced and this rate is quite steady. Currently the part is produced...

Consider and discuss the specific risks and nature of the company you will be auditing and create comprehensive work programs for the Acquisition, Payment, Property Plant, and Equipment (Fixed...

Learning Team assignments build upon each other from Weeks 2-5. The first step is to go to the website of a publically-traded US company and select the most recent 10-K Form (legally-required...

Consider and discuss the specific risks and nature of the company you will be auditing and create comprehensive work programs for the Inventory, Warehousing, and Payroll accounts and cycles. Submit a...

Answer the questions below for this year and last year, using your SEC 10-K: Link to SEC 10-K:http://d1lge852tjjqow.cloudfront.net/CIK-0000315189/ceea88ae-ba2b-4204-9b4a-2c9a06e40401.pdf?noexit=true...