North Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50.
Question:
North Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It costs North Manufacturing $40 to place an order, and the carrying cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a 3% discount on the cost of the pumps. Should North Manufacturing order 200 pumps at a time and take the 3% discount?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (16 reviews)
D 1000 unit cost 50 C o 40 C h 025 unit cost With disc...View the full answer
Answered By
Hamza Amjad
Currently I am student in master degree program.from last two year I am tutring in Academy and I tought many O/A level student in home tution.
4.80+
3+ Reviews
10+ Question Solved
Related Book For
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
Question Posted:
Students also viewed these Statistics questions
-
The Supermart Store is about to place an order for Valentines Day candy. The candy can be bought for $ 1.40 per box, and it is sold for $ 2.90 per box up to Valentines Day. After Valentines Day, any...
-
The probabilities that a bakery has a demand for 2, 3, 5, or 7 birthday cakes on any given day are 0.35, 0.41, 0.15, and 0.09, respectively.
-
A manufacturing assembly line has a demand for a specific part of 1200 parts per eight-hour day. It wants to design a lean system using containers. It takes about four hours to round-trip a container...
-
The consumer price index tends to underrepresent; overstating underrepresent; understating overrepresent; overstating overrepresent; understating ignore; understating the substitution of lower-priced...
-
A firm uses $1 million in cash to purchase inventories. a. Will its current ratio rise or fall? b. Will its quick ratio rise or fall?
-
On a typical night in New York, about 25,000 people attend a Broadway show, paying an average price of more than $75 per ticket. Variety (www.variety.com), a news weekly that reports on the...
-
Given the formulation of the free boundary problem for the valuation of an American Put option, \[\begin{aligned}& \frac{\partial P}{\partial t}+\frac{1}{2} \sigma^{2} S^{2} \frac{\partial^{2}...
-
Kramer Corporation is considering two investment projects, each of which would require $50,000. Cost and cash flow data concerning the two projects are given below: The high-speed photocopier would...
-
(g) Explain why it is necessary to exit from an investment and list the pros and cons to both a venture capitalist investor and the company's management team of exiting via a trade sale and via a...
-
1. How might Deloittes lattice approach help motivate employees and improve job satisfaction and performance? 2. How can managers determine whether a Deloitte employee is working at a decelerated...
-
Jim Overstreet, inventory control manager for Itex, receives wheel bearings from Wheel-Rite, a small producer of metal parts. Unfortunately, Wheel-Rite can only produce 500 wheel bearings per day....
-
Linda Lechner is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60. Furthermore, the standard deviation for BX-5...
-
Find product, if possible. 3 25 32 3 -6 0 43
-
Primary Task Response: Within the Discussion Board area, write 600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future...
-
In your role as a department head, with a vacant position within your department, having received and reviewed applications and resumes, you are now poised to commence interviews with potential...
-
A ceiling fan is set on high but is turned OFF. According to the owner s manual, when it isswitched ON , the motor provides enough torques to give the blades a constant angular acceleration until...
-
A diver of mass 6 7 . 9 kg stands on one end of a diving board of mass 2 1 . 7 kg , . Everything is in equilibrium ( since nothing is moving ) . What is the magnitude of the support force on the...
-
Sean, White, the flying tomato is rolling down a 3 0 degree ramp on skateboard because he's not just a snowboard and gold medalist. The broken skate to the total mass of Shawn and his skateboard is 7...
-
The purpose of this problem is to demonstrate that the probability that two random numbers are relatively prime is about 0.6. a. Let \(P=\operatorname{Pr}[\operatorname{gcd}(a, b)=1]\). Show that...
-
The liquidliquid extractor in Figure 8.1 operates at 100F and a nominal pressure of 15 psia. For the feed and solvent flows shown, determine the number of equilibrium stages to extract 99.5% of the...
-
Suppose that a group of physicians establishes a joint practice in a remote area. This group pro- vides the only health care available to people in the local community, and its objective is to...
-
American Aerospace produces military jet engines. Frequent shortages of one critical part has been causing delays in the production of the most popular jet engine, so a new inventory policy needs to...
-
Read the referenced article that fully describes the OR study summarized in the application vignette presented in Sec. 18.7. Briefly describe how inventory theory was applied in this study. Then list...
-
Freddie the newsboy runs a newstand. Because of a nearby financial services office, one of the newspapers he sells is the daily Financial Journal. He purchases copies of this newspaper from its...
-
The weekly salaries (in dollars) of 24 randomly selected employees of a company are shown below: 310 320 450 460 470 500 520 580 600 650 700 540 710 840 870 900 1000 1200 1250 1300 1400 1720 2500...
-
(a) Assume a non-dividend paying asset St, undergoes geometric Brownian motion dS = S+dt+S+dWt where W is a standard Brownian motion and and are constants. We assume also that r, the risk-free...
-
Eleanor is auditing a large manufacturing company. Currently, she is looking at the entire population of inventory purchases for the year, and matching the purchase order, receiving documentation,...
Study smarter with the SolutionInn App