Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Demand for an item is 18965 units per year. Each order placed costs $91. The annual carrying cost percentage per item in inventory is

Demand for an item is 18965 units per year. Each order placed costs $91. The annual carrying cost percentage per item in inventory is 21% each. The variable purchase cost is $2.50 per unit if less than 3000 units will be ordered, $2.40 from 3000 units upto (but not including 4000 units), and $2.30 for at least 4000 units. These are all-units discounts. Part a: 3 points What is the optimal order quantity Q* for the unit cost of $2.30? Please round to a whole number. Locally stored answer: Part b: 2 points Is this quantity realizable/feasible? Please answer 'Yes' or 'No'. Locally stored answer: Part c: 5 points What is the optimal realizable/feasible total annual cost at a unit cost of $2.30? Parte: 2 points Is this quantity realizable/feasible? Please answer 'Yes' or 'No'. Locally stored answer: Part d: 3 points What is the optimal order quantity Q* for the unit cost of $2.40? Please round to a whole number. Locally stored answer: Locally stored answer:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

SOLUTION Part a To find the optimal order quantity Q for the unit cost of 230 we can use the economi... 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

Operations and Supply Chain Management The Core

Authors: F. Robert Jacobs, Richard Chase

4th edition

978-1259549724, 1259549720, 1259696596, 978-1259696596

More Books

Students also viewed these Finance questions

Question

Where could we expect to find back-thrusts?

Answered: 1 week ago

Question

Explain the difference between design and operational decisions.

Answered: 1 week ago

Question

Why is operations management important to any organization?

Answered: 1 week ago