Question: Wang Distributors has an annual demand for an airport metal
Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $25 per order. If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. Should Wang take the quantity discount?
Answer to relevant QuestionsThe catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for 500 people, they did not have enough ...Barbara Flynn 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 (and was normally distributed). Furthermore, the standard deviation for ...Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. Demand ...Sturdivant Sound Systems manufactures and sells sound systems for both home and auto. All parts of the sound systems, with the exception of DYD players, are produced in the Rochester, New York, plant. DVD players used in the ...How does yield management impact an aggregate plan?
Post your question