What are the steps involved in solving these problems?<\/p>
<\/p>
1: The frisco roughriders wants to explore their inventory policy on purchasing of hot dogs. They are currently using 200 cases of hot dogs per month and ordering 400 cases of hot dogs at a time. <\/p>
<\/p>
order cost : $15<\/p>
holding cost per case: $0.20<\/p>
<\/p>
a. under their current ordering scheme, what is the total cost?<\/p>
b. using an EOQ model, what would their total costs?<\/p>
c. how much money does this save in total?<\/p>
d. their supplier has offered an alternative deal of placing a monthly order of 200 cases of hot dogs. In exchange for the fixed monthly order, the supplier will change the order cost to a $10 each month. should they take the supplier up on this offer? <\/p>
<\/p>
2: Binary Choice sells new desktop and laptop computers. Their supplier for charges $60 per order, and holding cost if $150 per unit. They sell 50 computers per month. The manufacturer has offered the following price schedule:<\/p>
<\/p>
Order Quantity | Price per unit<\/p>
<11 | $520 <\/p>
12 to 64 | $500<\/p>
65 to 128 | $495<\/p>
>128 | $485<\/p>
<\/p>
a. what order quantity minimizes total annual inventory cost?<\/p>
<\/p>
b. the supplier has offered to be a drop shipper, i.e., they will ship directly to the customer. In exchange, they will increase the unit price to $515 per computer, but not charge the ordering costs and all inventory will be held at the supplier. From a purely financial standpoint, should we take them up on their offer? <\/p>", "transcribed_text": "", "related_book": { "title": "Cost Management Measuring Monitoring And Motivating Performance", "isbn": "1118168879, 9781118168875", "edition": "2nd Canadian Edition", "authors": "Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/635f99b5717e0_1157.jpg", "uri": "\/textbooks\/cost-management-measuring-monitoring-and-motivating-performance-2nd-canadian-edition-1157", "see_more_uri": "" }, "free_related_book": { "isbn": "3319152238", "uri": "\/textbooks\/model-validation-and-uncertainty-quantification-volume-3-proceedings-of-the-33rd-imac-a-conference-and-exposition-on-structural-dynamics-2015-1st-edition-9783319152233-9783319152240", "name": "Model Validation And Uncertainty Quantification Volume 3 Proceedings Of The 33rd IMAC A Conference And Exposition On Structural Dynamics 2015", "edition": "1st Edition" }, "question_posted": "2024-06-29 01:30:05", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/a-uniform-slender-rod-of-length-l-is-dropped-onto", "description": "A uniform slender rod of length L is dropped onto rigid supports at A and B. Immediately before striking A the velocity of the rod is v1. Since support B is slightly lower than support A, the rod...", "stars": 3 }, { "url": "\/study-help\/biostatistics\/what-are-the-parameters-in-a-simple-linear-regression-model-1981264", "description": "What are the parameters in a simple linear regression model?", "stars": 3 }, { "url": "\/based-on-past-experience-leickner-company-expects-to-purchase-raw", "description": "Based on past experience, Leickner Company expects to purchase raw materials from a foreign supplier at a cost of 1,000,000 marks on March 15, 2012. To hedge this forecasted transaction, the company...", "stars": 3 }, { "url": "\/study-help\/questions\/say-that-you-purchase-a-house-for-264000-by-getting-9853372", "description": "Say that you purchase a house for $264,000 by getting a mortgage for $230,000 and paying a down paymegt of $34,000. If you get a 20-year mortgage with an interest rate of 6 percent, what are the...", "stars": 3 }, { "url": "\/study-help\/contemporary-business-law\/raugustmathwig-inc-a-corporation-was-the-sole-general-partner-of", "description": "Raugust-Mathwig, Inc., a corporation, was the sole general partner of a limited partnership. Calvin Raugust was the major shareholder of this corporation. The three limited partners were Cal-Lee...", "stars": 3 }, { "url": "\/study-help\/questions\/exercise-47-static-preparing-a-work-sheet-and-recording-closing-1803345", "description": "Exercise 4-7 (Static) Preparing a work sheet and recording closing entries LO P1, P2 The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December...", "stars": 3 }, { "url": "\/study-help\/questions\/a-little-girl-playing-with-a-doll-accidentally-drops-it-1486678", "description": "A little girl playing with a doll accidentally drops it while playing. She picks up her doll and gives her a hug and says she is sorry to the doll. When the girl's mother asks why she did that, the...", "stars": 3 }, { "url": "\/study-help\/questions\/make-a-decision-what-do-you-think-is-the-best-1487047", "description": "MAKE A DECISION: What do you think is the best course of action for Kate? Kate is not ready for discharge nor is she ready to be responsible for her son. She should spend at least 30 more days...", "stars": 3 }, { "url": "\/study-help\/questions\/based-on-his-experiment-was-dr-moestellers-conclusion-correct-a-1487138", "description": "Based on his experiment, was Dr. Moesteller's conclusion correct? a. No, because he did not randomly select his subjects. b. No, because he knew some of his subjects better than others. c. Yes,...", "stars": 3 }, { "url": "\/study-help\/questions\/you-are-a-high-school-counselor-maria-is-a-10th-1487271", "description": "You are a high school counselor. Maria is a 10th grade student who has just moved to the U.S. from Spain because her parents passed away. She is living with her cousin, who is currently on free and...", "stars": 3 }, { "url": "\/study-help\/questions\/reflection-questions-please-review-the-assignment-instructions-and-then-respond-1488557", "description": "Reflection Questions Please review the assignment instructions and then respond to the following questions. This section must be completed before proceeding with the assignment. 1. Based on what you...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/organizational-behaviour-25-identify-the-steps-involved-in-achieving-improvement-4439680", "next": "\/study-help\/questions\/organizational-behaviour-25-identify-the-steps-involved-in-achieving-improvement-4439682" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "What are the steps involved in solving these problems? 1: The frisco", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/what-are-the-steps-involved-in-solving-these-problems-1-4439681" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }