Suppose that instead of ordering the amount Q specified by the EOQ formula, the order quantity 0.8Q
Question:
Suppose that instead of ordering the amount Q specified by the EOQ formula, the order quantity 0.8Q is used. Show that the sum of the annual ordering cost and the annual holding cost increases by 2.5%.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (10 reviews)
Using suboptimal order quantity Let Q current EOQ We know HCQSCQ where HC annual holding cost ...View the full answer
Answered By
Susan Juma
I'm available and reachable 24/7. I have high experience in helping students with their assignments, proposals, and dissertations. Most importantly, I'm a professional accountant and I can handle all kinds of accounting and finance problems.
4.40+
15+ Reviews
45+ Question Solved
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
Question Posted:
Students also viewed these Business questions
-
Suppose that instead of funding the $100 million investment in 12 percent British loans with CDs issued in the United Kingdom, the FI manager in problem 16 hedges the foreign exchange risk on the...
-
In most Western democracies, it is settled law that governments cannot simply confiscate land for public purposes. Such confiscation is labeled a taking and, even when the government has compelling...
-
Suppose there are three possible candidates that might run for office, and each has to decide whether or not to enter the race. Assume the electorates ideal points can be defined by the Hotel ling...
-
Identify any one non governmental / non-profit organization in Toronto locality. Brief introduction to the organization that includes the following information: Vision/Mission Services / Programs...
-
What are some of the key strategies that companies can utilize with employees to ensuring a successful merger or acquisition?
-
What is the discount rate? What happens to the money supply when the Fed raises the discount rate?
-
What is combined reliability?
-
Alan Vitt purchased an iBook G4 laptop computer from Apple, Inc. Shortly after the one- year warranty expired, the laptop failed to work due to a weakness in the product manufacture. Vitt sued Apple,...
-
Two parallel plates, each charged equally and oppositely to the other, are separated by 2.2500 cm. A proton is let go from rest at the positive plate's surface and, at the same time, an electron is...
-
Markus Company's common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per share this year. It also provided the following data excerpts...
-
A drugstore sells 30 bottles of antibiotics per week. Each time it orders antibiotics, there is a fixed ordering cost of $10 and a cost of $10 per bottle. Assume that the stores cost of capital is...
-
Let and Use the row-matrix representation of the product to write each row of AB as a linear combination of the rows of B. -2 A = -3 2 0 -1 3 0 B = -1 6. 4.
-
A certain electronic device needs to be protected against sudden surges in current. In particular, after the power is turned on the current should rise no more than 7.5mA in the first 120s. The...
-
A cash flow series is increasing geometrically at a rate of 6 percent per year. The initial cash flow at t = 1 is $1,000. The increasing payments end at t = 20. The interest rate in effect is 15...
-
Solve the IVP. Do not use Laplace transformation. \(\dot{y}-y \tan t=t+1, \quad y(0)=1\)
-
Australia produces natural resources (coal, iron ore, natural gas, and others), the demand for which has increased rapidly as China and other emerging economies expand. a. Explain how growth in the...
-
You are a polluter who is faced with the question of whether to comply with the regulations on emissions or to violate them. If you comply with the regulations, your costs are \(k\). If you do not...
-
Can you tell me a little about your responsibilities in your position?
-
Write each compound statement in words. p: The coffee is Maxwell House. q: The coffee is hot. r: The coffee is strong. (p ~ q) ~ r
-
a) Show that (a, b) := {{a}, {b}} does not satisfy the ordered pair axiom. b) Determine whether each of the following statements is true or false. (Give a reason in each case): (i) {a, b} C (a, b)....
-
Do wholesalers and retailers need to worry about new-product planning just as a producer needs to have an organized new-product development process? Explain your answer.
-
How do you think a retailer of Maytag washing machines would react if Maytag set up a website, sold direct to consumers, and shipped direct from its distribution center? Explain your thinking.
-
What risks do merchant wholesalers assume by taking title to goods? Is the size of this risk about constant for all merchant wholesalers?
-
Explain how probability can be applied to decision-making in public administration situations.
-
Do you think that all levels of management have the same functional skills needed for the workplace? How do managers in organizations communicate in terms of tone and leadership style?
-
Accustart Ltd. acquired 38% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.76 million for 144,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that...
Study smarter with the SolutionInn App