A gardener buys plant nutrients from Miracle-Gro. Miracle-Gro's price schedule is $5.9 per bottle on orders...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A gardener buys plant nutrients from Miracle-Gro. Miracle-Gro's price schedule is $5.9 per bottle on orders of 1 to 27 bottles, $5.6 per bottle on orders of 28 to 39 bottles, and $5.4 per bottle on orders of 40 or more bottles. Ordering cost is $5.9 per order, and annual holding cost is 15 percent of the per- unit purchase price. Annual demand is 50 bottles. What is the minimum inventory cost the gardener can achieve? A gardener buys plant nutrients from Miracle-Gro. Miracle-Gro's price schedule is $5.9 per bottle on orders of 1 to 27 bottles, $5.6 per bottle on orders of 28 to 39 bottles, and $5.4 per bottle on orders of 40 or more bottles. Ordering cost is $5.9 per order, and annual holding cost is 15 percent of the per- unit purchase price. Annual demand is 50 bottles. What is the minimum inventory cost the gardener can achieve?
Expert Answer:
Answer rating: 100% (QA)
To determine the minimum inventory cost we need to consider the optimal order quantity that minimize... View the full answer
Related Book For
Posted Date:
Students also viewed these general management questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
. A vertical pole that is 2 meters tall casts a shadow that is 1.5 meters long. Nearby, at the same time, another vertical pole casts a shadow that is 6.5 meters long. How tall is this pole? a. Make...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Explain why learning reduces the effective marginal cost of production. If firms set prices in proportion to their marginal costs, as suggested by the Economics Primer, how can learning firms ever...
-
A very thin round plate of radius R carrying a uniform surface charge density a is located in vacuum. Find the electric field potential and strength along the plate's axis as a function of a distance...
-
Convert the following Celsius temperatures to Fahrenheit (a) -62.S0C, the lowest temperature ever recorded in North America (February 3, 1947, Snag, Yukon); (b) 56.7C, the highest temperature ever...
-
Write a two-page report explaining the two basic strategies that S&S, Inc. can pursue and the three different strategic positions that it can adopt. Include in your report a discussion and examples...
-
On January 1, 2013, Plymouth Corporation acquired 80 percent of the outstanding voting stock of Sander Company in exchange for $1,200,000 cash. At that time, although Sanders book value was $925,000,...
-
You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Kia Rio, which will cost $21,500 to purchase and which will have OCF of -$2,700 annually...
-
Hotel DelRay is located at the heart of the city of Brussels, in Belgium. Brussels is a major hub for international politics, a home for several international organizations and diplomats, and a...
-
The World Bank collects information on the life expectancy of a person in each country and the fertility rate per woman in the country. The data for 24 randomly selected countries in 2011 have been...
-
What characteristics of computer systems often lead to high costs being incurred because of computer-system errors?
-
Why does the computer cause us to have increased concerns about the privacy of individuals?
-
Why are controls still needed to protect hardware, software, and personnel, even though substantial insurance coverage might have been taken out by an organization?
-
Give an example of the computer being used for data processing where you consider it to be: a. Socially desirable b. Socially undesirable
-
What are the four major objectives of information systems auditing? Briefly explain the meaning of each one of them.
-
Complete the to do lines and draw a picture of the recursive tree for countBear(42)? Here is your skeleton code: Copy the start code into your IDE and fill in the missing statements to make the code...
-
Hotel Majestic is interested in estimating fixed and variable costs so that the company can make more accurate projections of costs and profit. The hotel is in a resort area that is particularly busy...
-
1. The mean height of female students at a community college is 63.8 inches with a standard deviation of 2.6 inches. a. The majority of female student heights fall between what two values? b. A small...
-
Read the research study description and then answer the questions that follow the description. 1. Chapell, Blanding, Silverstein, Takahashi, Newman, Gubi, and McCann (2005) carried out an...
-
A researcher wanted to find out if there was difference between older movie goers and younger movie goers with respect to their estimates of a successful actors income. The researcher first...
-
The three general phases of analysis, design, and implementation are part of a ( _________________ ). (a) system development study (b) systems approach (c) expert system (d) decision support system
-
( ____________ ) is the first step in the systems approach. (a) systems design (b) stating objectives (c) systems analysis (d) systems evaluation
-
Characterize the organizational structure of the information system function.
Study smarter with the SolutionInn App