A produce distributor uses 800 packing crates a month, which it purchases at a cost of $ 10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $ 28. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ?
Answer to relevant QuestionsA manager receives a forecast for next year. Demand is projected to be 600 units for the first half of the year and 900 units for the second half. The monthly holding cost is $ 2 per unit, and it costs an estimated $ 55 to ...A company manufactures hair dryers. It buys some of the components, but it makes the heating element, which it can produce at the rate of 800 per day. Hair dryers are assembled daily, 250 days a year, at a rate of 300 per ...Given this information: Expected demand during lead time 300 units Standard deviation of lead time demand 30 units Determine each of the following, assuming that lead time demand is distributed normally: a. The ROP that will ...Ned's Natural Foods sells unshelled peanuts by the pound. Historically, Ned has observed that daily demand is normally distributed with a mean of 80 pounds and a standard deviation of 10 pounds. Lead time also appears ...Skinner's Fish Market buys fresh Boston bluefish daily for $ 4.20 per pound and sells it for $ 5.70 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $ 2.40 per pound. ...
Post your question